![]() Typically, this is seen on daily charts when a stock opens at a very different price than the price at which it closed the day before. 57.22 of gaps sized 1 to 1.99 closed within two days, compared to 46.74 on day 1. What is a Gap A gap in a stock occurs when a stock’s price jumps between the close of one candlestick and the open of the next. You see the strongest effect with down gaps, where: 74.32 of gaps sized 0.5 to 0.99 closed within two days, compared to 59.35 on day 1. Rising above that range signals a buy, while falling below it signals a short. Essentially, one finds stocks that have a price gap from the previous close, then watches the first hour of trading to identify the trading range. ![]() If you're trying to be an asshole, it's probably because you're raging from a loss, stop and deal with your issues or ask for help instead of taking it out on other people. As you can see, giving a gap one more day to fill greatly increases the chances. Introduction Gap trading is a simple and disciplined approach to buying and shorting stocks. No spamming, selling, or promoting do that with Reddit advertising here! Content creators must follow these guidelines if they want to post here.ĭon't be an asshole: You can provide constrictive criticism, but outright being an asshole doesn't belong here. ![]() Stay on topic: No content unrelated to Daytradingĭon't glorify losses or post wins without context details here. Posting & commenting requirements: Three (3) day old accounts and minimum 10 comment karma also follow the rules below: Subreddit Rules Here is a chart example: In this example, you can see that the stock gapped down. They are talking about a stock that has traded at the price level of a previous gap. If you're new to day trading, please see the getting started wiki. When we say that a stock is 'filling a gap', the Japanese would say that the stock is 'closing the window'.
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