You probably heard about #CME gap filling but have no clue what it is and why it is so important for #Bitcoin or the whole crypto market, Here is a thread to explain 🧵 👇
⭐⭐Repost will be appreciated ⭐⭐

⭐𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗖𝗠𝗘 𝗚𝗮𝗽 𝗶𝗻 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗧𝗿𝗮𝗱𝗶𝗻𝗴
Imagine you're watching your favorite show, and it goes off the air for a weekend, but when it comes back, the episode starts with a completely different scene than where it left off. That's kind of what happens with Bitcoin's price on the Chicago Mercantile Exchange (CME) when it creates what's known as a "CME gap."

⭐𝗪𝗵𝗮𝘁 𝗶𝘀 𝗮 𝗖𝗠𝗘 𝗚𝗮𝗽?
A CME gap in Bitcoin's chart occurs because while Bitcoin trades 24/7 on most platforms, the CME, where Bitcoin futures are traded, has specific trading hours and is closed on weekends. Here's how it works:
Friday Close: Let's say Bitcoin's price on CME closes at $30,000 on a Friday.
Weekend Movement: Over the weekend, Bitcoin might jump to $33,000 due to news or market sentiment, but this isn't reflected on the CME because it's closed.
Monday Open: When CME opens on Monday, Bitcoin doesn't start trading at $30,000 where it left off. Instead, it begins at $33,000, creating a gap on the price chart between $30,000 and $33,000.

⭐𝗪𝗵𝘆 𝗗𝗼 𝗧𝗵𝗲𝘀𝗲 𝗚𝗮𝗽𝘀 𝗠𝗮𝘁𝘁𝗲𝗿?
Price Reversion: Often, traders watch these gaps because there's a tendency for Bitcoin's price to move back to fill this gap, meaning it might drop back to $30,000 or close to it before continuing its trend. This happens because traders might see the gap as an overreaction or an opportunity.
Trading Strategy: If you're trading, you might bet on Bitcoin moving back to fill this gap. For instance, if you believe Bitcoin will drop back to $30,000, you could sell at $33,000, aiming to buy back cheaper at $30,000, making a profit from the price difference.
Market Sentiment:These gaps can also reflect significant changes in market sentiment or big news over the weekend that wasn't priced in earlier.

𝗘𝘅𝗮𝗺𝗽𝗹𝗲 𝗶𝗻 𝗦𝗶𝗺𝗽𝗹𝗲 𝗧𝗲𝗿𝗺𝘀:
Think of it like a game of catch-up. If you and your friend are playing a game where you have to match numbers, but you can only play on weekdays, and over the weekend, your friend moves the number from 30 to 33 without you, when you come back on Monday, you'd start at 33. But, because you both usually like to match numbers, there's a good chance you'll go back to 30 before moving forward again. That's your CME gap – a space in the game where the numbers didn't match up due to a break in play.
In Bitcoin's world, these gaps are like little mysteries or opportunities for traders, watching and waiting for #Bitcoin to catch up or move on, providing insights into where the price might go next based on past behavior and market dynamics.

#CMEBitcoinSpotTrading #CMEFILLING #CMEGap #CMEGaps #CME

Have you ever felt like the market is a puzzle designed to confuse? Well, you're not alone. Here's the insider knowledge that could have saved you hours of watching those "get rich quick" trading videos.

1. The Market's Three Moves
The market isn't as unpredictable as it seems. It does one of three things:

- Breaks out and trends: Price moves in one direction with momentum.
- Breaks out then reverses: A false breakout where the price quickly turns around.
- Ranges: It bounces between established high and low points.
Here's a pro tip: If the price is meandering in the middle of a known range, step back. The risk is high, and the probability of success is low.

2. The Daily Price Quartet
Every trading day gifts you four key pieces of data:
- High of the day
- Low of the day
- Opening price
- Closing price
Mark these daily. They're not just numbers; they're clues. They'll show you if the market is trending or if it's just playing ping-pong within yesterday's range.

3. The Fractal Nature of Markets
Think of the market as a set of Russian dolls. What you see on a big scale (like a daily chart) is mirrored on smaller scales (like a 5-minute chart). If you're caught in a sudden drop after what looked like an uptrend on your 5-minute chart, check the 15-minute. You might just find you were riding a small wave in a much larger tide going the opposite way.
**The Takeaway:**
Strip away the noise. Forget about the complex indicators for a moment. Watch how the candlesticks dance, understand the structure of the market day by day, week by week.

The market is a beast designed to bewilder, but it lays out facts every day for those willing to see them. Learn to read price action. Master market structure. Combine these with solid risk management, and suddenly, any strategy you apply becomes significantly more effective.
So, keep it simple, traders. Follow the facts, not the fads. Here's to making sense of the market's movements and trading with clarity. Good luck out there!