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Exhaustiongap

📊 Liquidity Gaps CheatsheetIn volatile markets, traders can benefit from large jumps in asset prices if they can be turned into opportunities. Gaps are areas on a chart where the price of a stock (or another financial instrument) moves sharply up or down, with little or no trading in between. As a result, the asset’s chart shows a gap in the normal price pattern. The enterprising trader can interpret and exploit these gaps for profit. 📌 What is a gap? A gap occurs when the price of a security moves quickly through a price level, either up or down, with little trading or pricing available over that time span. 📌 How they are formed Gaps can be caused by several factors, but they are mostly seen as a result of unexpected news or a technical breach of support or resistance. 🔹 On the fundamental side , the news could be a company beating earnings estimates by a large margin, or a speech by a Federal Reserve (Fed) official impacting interest rate expectations. 🔹 On the technical side, gaps can ensue following the break of a prior high/low, or other form of technical resistance or support, such as a key trend line. 💥 Key Takeaways About GAPS 🔹 Gaps are spaces on a chart that emerge when the price of the financial instrument significantly changes, with little or no trading in between. 🔹 Gaps can occur unexpectedly as the perceived value of the investment changes, due to underlying fundamental or technical factors, such as an earnings disappointment. 🔹 Gaps are classified as breakaway, exhaustion, common, or continuation, based on when they occur in a price pattern and what they signal. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
3
Types of Gaps !!!👨‍🏫Hello👨🏻‍🏫, dear traders from all over the world🗺️. I'm Pejman🙋🏻‍♂️ & welcome🌸 to one more educational adventure🧭 in Tradingview, but we will not be traders💹 today; We want to look at our charts like a hunter🏹. We look for every clue🐾 we see so that we can hunt suitable positions💱 like valuable creatures💰 and transfer them to the cages as our accounts💳 or wallets💸. Although I'm not too fond🙍🏻‍♂️ of hunting, either legally or illegally. But I know that hunting good positions in the forests🏞️🌳 of Tradingview is not prohibited😉❗. So let's get acquainted with these clues🔎 as soon as possible because the price is skittish🙈, and we don't want to waste the hunting time⏳✅. I said that in Technical Analysis , we look for ways to trade by using the price information, which is recorded on the charts📈. (such as the prey's tracks🔎🐾) Today I want to introduce one of these clues so that you can become a professional position hunter🏹 by identifying the clues👀; But don't forget that you should practice🙌🏻, be careful⚠️, and watch your positions👀, so you don't miss them or rush 🏎️💨to the wrong❌ position🙂. Today's clue is the GAPS . First, let's see what the GAP is🤔. The gap is nothing. I mean, it is something that is nothing😶🙄. It is incredibly paradoxical💥! I'm kidding😉, but the space between candles🕯️ or bars is called a GAP. A gap is created when we see👀 a price gap between two candles🕯️ or bars when the trading volume is high⏫ or low⏬. This difference or space between two candles is called a gap🤏🏻. It is said that gaps are more valuable✅ in higher time frames among the traders, so much coin, much care👀. Gaps, or as the Japanese🎌 term "windows," are significant for hunting🏹 positions, so as hunter traders, we should learn these gaps well👌🏻. The reason🧐 for creating gaps can be factors such as important positive🆒 or negative🙈 news or an increase🔺 or decrease🔻 in supply and demand. It is interesting to know that gaps are primarily seen in Forex , Stocks , and Commodities (especially when markets close and open). The space👌🏻 between the candles means that the price has jumped like a rabbit🐰 from one number to the upper☝🏻 different number. Or, like a monkey🐒, it moved from one number to a lower👇🏻 number. I tried to make it funny😊 and straightforward👌🏻, but these gaps that move up or down have different types, like the year's seasons🌈☁️. We have 4️⃣ seasons in a year and also 4️⃣ types of gaps in the charts. According to personal taste😊, I relate the gaps to the year's seasons and, simultaneously, do not forget the case of hunting positions🏹💰. So fasten your seat belts💺 because we want to travel in time🧳⏳ to all the year's seasons with this post🚩 and learn about the different price gaps, which are one of our clues🐾 to trap positions🪤. Let's start with the autumn🍂 season because we are still in it and can understand it better😌. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The name of this type of Exhaustion 🥱 gap. They are seen at the end🔚 of a process, which means that the process may change🔄 at any moment. Just like the autumn🍁 season, it may rain☔ anytime after seeing the clouds🌥️. Another feature of this gap is the increase🆙 in trading volume, so by paying attention👀 to these points and practicing by reviewing the charts📈, you can easily recognize🔎 this gap. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The next💁🏻‍♂️ gap is the Breakaway 🏃🏻‍♂️ gap. The breakaway gap is associated with an increase⤴️ in trading volume. This gap occurs when a critical range is broken🤞🏻, representing a strong💪🏻 start🏁 trend or a sign of trend change. Like the blooming🏵️ of some trees🌳 in winter☃️ or the sprouting🌱 of plants from under the snow❄️. Also, This gap is created when the price starts moving from a limited area, like support or resistance ( I'm going to talk about them in the future😉. ) I have to say that the breakaway gap plays a critical👌🏻 role in some of the classic reversal patterns, such as the Head and Shoulders Pattern , Double Top/Bottom Patterns , etc. When The breakaway gap is combined with Classic Reversal Patterns, the breakaway gap adds to these patterns' validity✅. If you want to get acquainted with the most important Classic Reversal Patterns of Technical Analysis , I suggest you read the following post👇. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Now it's time for spring🌸🍀, and I'm going to introduce a gap like spring. Spring season is a sign✌🏻 of the continuation of life💐, and this gap in technical analysis shows the continuation of a trend📈. The Continuation gap is also known as a Runaway 🏃🏻‍♂️ gap, occurring in the middle of a downward↙️ or upward↗️ trend. This type of gap creates a kind of confidence for traders to enter. It doesn't occur when the price fluctuates or corrects in a limited area but occurs during a rapid increase or decrease. So, as a result ☑️, if this gap occurs in an upward trend🔺, it indicates the continuation of the upward movement. And when it is created in a downward trend🔻, it indicates the entry of more sellers and further price decline. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Now we have reached✌🏻 the last gap🥰. This gap is Common , but I should introduce it as the summer☀️ season. These gaps are very common, And considering the time frame it has, it is expected to fill quickly, which is also called "closing the gap." The filling or closing of the gap means that the price returns🔁 to the same area where the gap was created, like a criminal returning to the crime scene😄. This can be true✅ for gaps as well. Time flies in summer🏝️, and Common and Exhaustion 🥱gaps fill as soon as a blink👁️. You may have heard👂🏻 that gaps are always filled, but this is not permanent🙅🏻‍♂️ and only a strong possibility🤏🏻. For example, Continuation 🏃🏻‍♂️ & Breakaway gaps usually take a long time⌛ to fill. But what if the gap doesn't close🤷🏻‍♂️? Go to any currency pair and examine👀 the recorded data🗄️; You will find that many gaps take a year or more to close. It is interesting😃 to know that the Japanese🎌 have another interpretation of the price gap. They use gaps as continuation and reversal trading patterns (as I said, I'll explain them in future posts🔜😉). It is interesting to know that the combination of gaps can create the Island reversal pattern. The Island pattern consists of two gaps ; One up⬆️ and one down⬇️. We will definitely✅ learn more about these patterns in the following posts🔜, but today we are only focusing on the gaps🧐. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Another thing I want to add➕ is about the Heikin-Ashi charts💹 that we learned about in the previous post🔙. Gaps are filtered❌ in Heikin-Ashi charts. As I said, in this chart, the average is displayed between two✌🏻 consecutive candles; even candlestick patterns are filtered❌. So, the type of chart is also essential👌🏻 for finding gaps. Well, I gave you the basic tips to identify these gaps🤏🏻, and now you can carefully look👀 for them in your charts💹. Practice this information for a bit, as I will be back soon🔜 with an educational post👨🏻‍🏫 on how to trade💰 with these gaps. If you have any questions❓, you can ask me💬. We will get acquainted with new clues🔎 in new posts, so until that day, take care of your knowledge📊 and increase it every day📈, because according to Kofi Anan: Knowledge is power💪🏻, and information is liberating. Education📚 is the beginning of progress in every society🏙️, in every family👨‍👩‍👧‍👧. I hope you become stronger🙌🏻 daily by using your knowledge, and I will also increase your progress by teaching you the introduction. I wish🙌🏻 you happiness, health😍, and success😎.
Editors' picks
Education
by pejman_zwin
42
HDFC BANK*At 15 min timeframe, price is at support of 200 - EMA. HDFC will also open near 1460(whole number) and Volume profile is also strong on this price. If price open AT 1460 then first resistance rectangle(1465-1468) and may give sharp fall till 1444. We can take new entry from this level(1444) to day's high OR may be it break this level(1465-1468) create a support zone and give the target of 1475 and then of 1486. Profit:- 1. From 1465 to 1486 is 1.30%. 2. From 1444 to 1453/1465 is .05% or 1.48%. 3. From 1444 to 1435 is .07%. NSE:HDFCBANK NOTE:- Take help from volume.
NSE:HDFCBANK
by ps059042
SPX: Is it about to reverse the trend? Key points to watch!Hello traders and investors! Let’s see how the SPX is doing today! First, in the 1h chart, we see that the 4,500 is a very strong resistance, as we thought. Yesterday, we closed exactly at 4,500, and today, we are trying to break it again. The SPX is in a short-term bear trend, and there’s no bullish reversal sign on it yet. However, if it stays above the 4,500 today, we might see a bullish pivot triggered above the 21 ema, and that’s a good thing. This is what the SPX needs in order to reverse the trend, and in this scenario, the 4,593 would be the next resistance. What’s more, the last gap was filled (blue square), giving us the idea that this was an Exhaustion Gap. This alone is not a bullish sign either, but it tells us that if the index is about to reverse, now would be a good time, as the sellers are losing strength. If it doesn’t react, probably the next support at 4,456 will be retested again. Unlike in the 1h chart, we see a clear bull trend in the daily chart, as the index is doing higher highs/lows and the 38.2% Fibonacci’s Retracement is holding the price nicely. What’s more, the 21 ema is also working as a support, and we are above it today again. Now that we are near this support area, the volume is increasing again, and it seems it wants to resume the mid-term bull trend. This movement was extremely technical, and there’s nothing surprising going on here. To me, the index is bullish, but we must not lose the 38.2% retracement, as when this happens, it usually drops all the way down to the 61.8% retracement. I’ll keep you guys updated on this, so remember to follow me to keep in touch with my daily analyses!
SP:SPX
by Nathan_The_Finance_Hydra
7
SPX: I told you to BUY amid PANIC.Hello traders and investors! The SPX is going up more than 2% today, which is not surprising at all to us, as we already identified yesterday that it was the moment to buy. But what about those who missed the opportunity? Many investors freeze in days like yesterday, and don’t have the guts to act. Is it now too late to buy? We’ll see. First, in the 1h chart, we identified the Exhaustion Gap and the pivot point the index did. Now, we are trading above the 21 ema, and it seems nothing can stop the SPX. In my view, yes, it is too late to buy, and a pullback to the 21 ema would be a healthy and normal movement. Only after a pullback, I would see another opportunity to buy again. Remember: Buy near supports, sell near resistances. The target for this bullish movement is the Breakaway Gap, at 4,472, and only if we see a clear bearish structure the bullish bias will be ruined. So far, not a clear bearish structure. In the daily chart we see a Piercing Line candlestick pattern yesterday, which was triggered today, reinforcing the bullish momentum, however, the 21 ema is the next resistance. In my view, we must pay attention to top signs in the 1h chart for now, and when it gets closer to the 21 ema in the daily chart. Then we’ll see how to proceed. Any top sign in the 1h chart might be an excuse to book profits, but pullbacks are desirable, as long as they don’t ruin the bullish configuration. I still see plenty of opportunities around, as I mentioned yesterday, and although it is too late to buy SPX now, many stocks are looking incredible. Regardless of the scenario we are in, it is always possible to make money. If you missed my previous analysis, the link to it is below as usual. I’ll keep you guys updated every day on this, so remember to follow me to keep in touch with my studies.
SP:SPX
by Nathan_The_Finance_Hydra
14
Happy Days are Here Again!Irrational Exuberance! Bad news is good, good news is gooder! The gaps tell all. Measured move from the runaway gap ought to end up around 388 +/- 2 pips. There must be and certainly will be a pullback from a last exhaustion gap, may gap up sometime 1-3 Nov. Fed minutes on 3 Nov may be catalyst for pullback. Likely pivots shown, 1/3 speedline most likely, given extreme fearless bullishness. Can bull anywhere anytime from pullback to any of the levels shown. Not even attempting to guess where this might occur, get ready! Final ATH TBD, might come in Dec for Santa Rally IMO. Would be a 5th of V EW, a monster. The subsequent break in 2022 will be spectacular... Not advice, just A TOOLUSE TUTORIAL... REMEMBER THE TREND IS UR FRIEND TILL THE END AT THE BEND! GLTA!!
NASDAQ:QQQ
by DaddySawbucks
14
FB: Could this be the bottom? Let's see.Hello traders and investors! Let’s see how FB is doing today! First, we see that FB is clearly in a bear trend. There’s nothing that could help FB now, unless we see a clear bullish reaction. As someone who is out of FB, I’m more tempted to buy than to sell, as the risk/reward ratio favors the bulls. If we fill the last gap, it’ll confirm an Exhaustion Gap, and what’s more, the $ 323.18 is an interesting support, and a good place for a reaction, as we can see on the daily chart: There’s a good chance that this could be an Exhaustion Bar, a large bar that appears after a bearish leg, hitting a previous support level, with good volume. Along with the possible Exhaustion Gap in the 1h chart, we can assume that any confirmation of a reversal down here would be an incredible sign to buy. However, we always must wait for confirmation, ok. If I were shorting FB since the $ 385, I would probably book profits now. If you liked this analysis, remember to follow me to keep in touch with my daily updates. Have a good week!
NASDAQ:META
by Nathan_The_Finance_Hydra
3
SPCE: Is it worth to trade it right now?Hello traders and investors! Let’s take a look at SPCE today! Yes, SPCE is dropping sharply, we have no reversal sign around, and there’s nothing telling us it’ll stop dropping. However, we have some key points to keep in mind. Since we lost the 21 ema and the gap area (yellow square), which was indeed an Exhaustion Gap , I think we can work with Fibonacci here. Another support lost is the 38.2% retracement, and in these circumstances, the 50% retracement usually works. This retracement level is around $ 35.80, which is starting to get close to the 21 ema in the weekly chart: It looks like we had a huge V-Shape recovery here, and now we are just doing a pullback. In the mid-term, the odds are that one of the retracements will hold the price, but the 50% retracement would be a perfect support. If SPCE hits there, then it might be worth to trade it. If SPCE will lose it afterwards, or if it’ll give us a reversal sign and fly again to the $ 60 we don’t know yet. SPCE could be an interesting stock to trade, but right now, my students and I are aiming for more interesting stocks. Just focus on the points mentioned in this analysis and you’ll be just fine. If you liked this analysis, remember to follow me to keep in touch with my daily free studies, and support this idea if it helped you! Thank you very much!
NYSE:SPCE
by Nathan_The_Finance_Hydra
10
Gap TheoryThe gap theory is short and simple. Not everything needs to be lengthy and laborious. "Everything should be simple as possible, but not any simpler" Break-Away Gap Once a new cycle has begun and you see a breakaway gap in the STARTING of a move, you get confirmation of this new cycle. HOLD. Run-Away Gap Once the trend is continuing for some time and then you see a second gap, this is a confirmation that you are somewhere in the MIDDLE of the move, so you know a further movement in price is expected. HOLD. There is a possibility that you can get multiple runaway gaps. Exhaustion Gap After a move in price had already happened, a gap that signals the END of the move happens. If this is your 3rd gap on the, you should look very closely to distinguish if it is a runaway gap or exhaustion gap. SELL. How do you tell the difference between the exhaustion gap and the runaway gap? Easy, if after the gap happens the price shoot straight up without closing the gap in the next few days ---> runaway gap. HOLD. if after the gap happens the price is closing the gap in the next few days ---> exhaustion gap. SELL. If you like it, follow and like so it will be saved in your saved ideas for future reference.
AMEX:MJEducation
by ZoharCho
5
Bullish Island Reversal Pattern & Exhaustion GapA: What type of gap is A1? Possibly a continuation gap or exhaustion gap. This gap is questionable because it is unconfirmed. A2: This is confirmation that A1 is an exhaustion gap. This gap is now at least a temporary exhaustion gap. An exhaustion gap breaks out in the direction of the current trend, and then it will reverse direction and break the previous major support price. When it breaks the previous major support, then it is a confirmation. B: What type of chart pattern is this? This is a bullish island reversal pattern. It involves two gaps. I gap downward and a gap higher that will close the previous gap. A bullish island reversal pattern is an indication that the price will go higher. C: How to interpret volume with price gap? I heard before that high volume is associated with a continuation gap, and low volume is associated with an exhaustion gap. I don't know. I am going to answer this question with a maybe. Volume was high with gap A1 in the chart, but the price quickly reversed direction. Thank you for reading! Greenfield Remember to click "Like" and "Follow" to see more articles. Disclosure: Article written by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.
NYSE:FEducation
by GreenfieldAnalysis
What is a price gap? How to trade the price gap?What is a price gap? A price gap appears on the price chart as a blank space, and the blank space represents the time when there was no trading activity in that particular price level. 4 Types of Price Gaps 1. A breakaway gap happens when the security traded in a narrow range for some time, and then the security jumps to a different price level. This indicates interest in the security to test a different price level. 2. A common gap happens because of traders daily buying and selling activity. 3. A continuation gap is a measuring gap to determine if the current trend will continue. 4. An exhaustion gap is a gap that happens toward the end of a trending period. This can be a sign of a price reversal is about to happen. How to trade the price gap? Traders should trade in the direction of the breakaway gap and continuation gap. Traders should consider carefully before adding to their current position when they encounter an exhaustion price gap. What are some of the reasons one may fail to trade the price gap? Possibly due to misinterpreting the exhaustion gap as a continuation gap, and possibly misinterpreting the bull or bear trap as a breakout gap. Possibly it was initially a continuation gap or a breakout gap correctly identified, but suddenly the trend changed direction and trapped the traders. Thank you for reading! Greenfield Remember to click "Like" and "Follow!" Disclosure: Chart interpreted and article prepared by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.
NASDAQ:TSLAEducation
by GreenfieldAnalysis
16
US 30 near Pivot; Bearish Gartley Completed 9/14/18Dow index has reached 1.618 Fibo on B-D arm 9/14 when pattern is drawn from closing price tops of candle bodies. A previous idea of mine showed it from top of wicks. This is necromancy, folks. Somewhere in between lies reality. Expect to see that on Monday or perhaps Tuesday next week. Should arrive Thursday at the latest. Target zone for pivot is depicted in chart with price labels. R3 is at 26331; anything is possible but it seems unlikely, given the geopolitical milieu. Somewhere in the box between 26248-26288 is the most likely zone, just under the trendline reaching back thru June to April. On decline, target is S1 at 25790, previously tested. Lower of course possible depending on sentiment and panic levels. S2-S5 depicted with labels. Alternate path shown if rally fails; I expect index to test trendline in the box, however. We have an exhaustion gap on 9/13 to backfill in a bear pennant, and investor sentiment is now >70% bullish, VIX near alltime lows and three major indices making new alltime highs. See my linked post for explanation why 9/18 Dow of 26200 = 12/17 Dow of 27260. (Share buybacks, 2 components in bear territory.) As always, trade at your own risk as I do not pretend to give investment advice and this post is an idea for education and entertainment only- good luck!
DJ:DJIShort
by DaddySawbucks