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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😎.
Education
by pejman_zwin
39
W - strong price actionW had begun to form a saucer base pattern since Sep2022 (4 months basing), eventually cumulating to a break above it's neckline last Friday ( 20 Jan23) on very large volume. The following Monday on 23 Jan23, W announced it will cut 10% of its workforce and the market reacted by gapping the stock straight above it's 200 day moving average on yet another high volume day. Since then it had pulled back a little, forming a potential bullish flag. Will the recent gap close soon? not necessarily, if it is a breakaway gap (which usually signify the start of a new trend). Can only wait and see. Meanwhile, it is worth a shot to go long as long as it starts to break above the bull flag, with initial stop loss placed just slightly below the start of the gap @ 46.70. Trail stop up once the trade goes our way. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NYSE:WLong
by Juliac
2
BTC In A Corrective Pullback: Intraday Elliott Wave AnalysisBitcoin made sharp reversal and strong recovery last week, which we see it as a five-wave bullish impulse from Elliott wave perspective. With recent sharp decline into wave (a), followed by current recovery in wave (b), there's a chance for another wave (c) drop to complete a higher degree wave "iv" correction. Ideal support comes around 20.000 level that can also fill the BTC CME Futures Monday's GAP before the uptrend for wave "v" resumes ahead of the weekend. Happy trading!
CME:BTC1!
by ew-forecast
7
TSLA: BULL TRAP? Pay Attention to the Most Important Support!• TSLA crashed yesterday, and it seems it wants to resume the bear trend, making the previous rally a bull trap; • Today, TSLA is trying to lose the 21 ema in the 1h chart (pre market), and if that’s the case, we can expect more drop ahead; • What’s more, if it loses the 21 ema in the 1h chart, it’ll lose yesterday’s low at the same time, triggering a Dark Cloud Cover pattern in the daily chart; • The area at $123 is the next technical support level in the 1h chart: 1) previous top level; 2) 38.2% Fibonacci’s Retracement; 3) Gap level; • Therefore, in my view, the $123 area is the most important support level. If TSLA loses it, the bearish momentum will persist, and it could easily seek the $100 again; • In order to frustrate this bearish thesis, it must stay above the $123, and do a very good (bullish) reaction; • I’ll keep you updated on this everyday, as usual. Remember to follow me to keep in touch with my daily analyses!
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
9
Mt.BFX | Tezos XTZ Structure Map | $900The analysis includes multiple methods of technical analysis to produce a map. The labels for the chart and what the chart says are on the chart itself, more information about how to create a chart like this will come with updates to this idea. A quick rundown of what I do use are: Trend Line to extend from two lowest structure closes. Horizontal Ray tool to mark off structure highs and lows on the Monthly Timeframe. Box tool to mark off Monthly and Weekly gaps in price action. Fibonacci tool using Powers of Two or Binary numbers to plot growth lines originating from two of the lowest close values. This cancels the logarithm out when using a logarithmic chart. What do the boxes mean? Red Box - Monthly TF Gap Down White Box - Monthly TF Gap Up Orange Box - Weekly TF Gap Down Blue Box - Weekly TF Gap Up I predict the price to move away from $8 and break into triple digits over the long term. The price targets are as follows: $7.30 $14.60 $28.80 $57 $114 $227 $456 $900 With a price at $900 per coin, the Tezos platform would be valued at $798,181,180,200 for the total supply, not that in circulation as of 26th August 2021. $227 is a conservative estimate valuing the platform at $201 billion. This is not financial advice.
KRAKEN:XTZUSDLong
by Mt.BFX
9
ZYME - broke up from baseZYME peaked @ 59 in Jan2021 and had been generally on the downtrend since. It began to bottom around Feb 2022 (after a 90% plunge!) and had been consolidating in a sideway range until the 200 day MA began to come down and flatten out. Today it gapped strongly out of this range high of 9.28, a possible breakaway gap that will increase the odds of a valid breakout. However, the volume isn't too great at the moment hence the verdict's still out if it will soon retrace to retest neckline 2 (or even to close the gap in the worst case). Hence I will put the initial stop loss just underneath this gap @ about 8.5 The trend is in early days yet, could still be choppy until a stronger trend is apparent. Disclaimer: Just my 2 cents and not a trade advice. I may or may not enter into this trade. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:ZYMELong
by Juliac
4
SPX: Next Support/Resistance levels to watch from here!• The SPX is in a short-term bull trend, doing higher highs/lows, trading above the 21 EMA; • Its last bottom level was above a dual-support level, made by the 21 EMA and the upper trend line of an Ascending Channel, which SPY did an upwards breakout; • This dual-support coincides with the 21 EMA in the daily chart, which we nailed as our main support on our previous public study on SPX – link below this post, as usual; • Everything point to a continuation of the momentum, as we don’t see any meaningful top sign, so far; • However, if SPX is about to correct, now would be a good time, as it just filled a Gap (3,965), and any bearish reaction in this area would suggest a pullback to the 21 EMA again, at least; • Since there’s no clear bearish reversal structure, the next resistance on it is the 4,053; • So far, everything is going according to the plan, and the SPX is behaving as expected. I'll keep you updated on this. Remember to follow me to keep in touch with my daily analyses!
SP:SPX
by Nathan_The_Finance_Hydra
2
NIO: The Most Important Support is Here! 👇• NIO is still in a long-term bear trend, however, it is doing an important reaction this week; • It is confirming a bottom sign, just above the support at $9.40 (Support in Oct 2022, and Gap from Jul 2020); • Only if it loses the $9.40 I see NIO seeking the purple line below the price, maybe even the $5.70 (Jan 2020 top level); • However, the recent reaction might jeopardize a bearish sentiment, at least for now. It all depends on how it’ll react in the daily chart: • Yes, NIO triggered a Bearish Flag, and as far as I know, it is just doing a pullback to the lower purple line again, before another drop; • If NIO enters the Flag area again, and does a clear bullish structure, it’ll most likely frustrate this bearish pattern, and seek the next resistance in the weekly chart, which could be either the 21 ema or the upper trend line; • Either way, NIO looks promising. I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analyses!
NYSE:NIO
by Nathan_The_Finance_Hydra
2
VIX Trend As we can see today the SPY bounced up from it's trendline in the morning, breaking out on a major resistance. Two scenarios can happen tomorrow #1 VIX bounces from the trendline causing the SPY to go down which would invalidate todays breakout and cause it to come back down. Considering that both the SPY and VIX have an opposite GAP it could go either way. #2 VIX breaks the trendline and may come down to fill the GAP it has around the marked area. In this case we can confirm that the SPY can move up to fill it's GAP as well. Trade safe ! I'd love to hear your input and thoughts on this.
TVC:VIX
by eguerrero589
1
MSFT: Crashing? Yes. Scary? Nope.• MSFT just hit our target at $228, as it did exactly what we expected since our previous public analysis on it, almost a month ago (the link is below this post, as usual); • Despite the high volatility, this movement is very technical and not surprising at all, but in order to bounce again, MSFT has to react as soon as possible; • The problem is that any bounce will face at least two resistance levels in the daily chart: First the $238, second the 21 ema; • Only if MSFT breaks these key resistances it might do a clear reversal structure; • If not, we can expect a continuation of this bearish sentiment all the way down to $212, the next technical support level; • Therefore, let’s pay attention to the $228 support, as now would be the best time for a reaction. Remember to follow me to keep in touch with my daily analyses!
NASDAQ:MSFT
by Nathan_The_Finance_Hydra
2
NIO: Triggered our Bearish Flag! 🐻 What to expect next?• NIO triggered our Bearish Flag chart pattern, indicating a continuation of the bearish sentiment; • We studied this scenario in our previous public analysis on NIO – link below this post; • In the daily chart, the 21 ema is working as a resistance, and it is pointing down, which reinforces the idea of a bearish sentiment; • What’s the next technical support level for NIO? The purple trend line in the weekly chart. Below that point, the $5.70; • Could NIO react from here? Yes, and if it is about to react, the timing couldn’t be better. NIO is near the weekly support at $9.40 (black line, weekly chart), and any bottom sign would indicate a possible bounce to the 21 ema again. However, there's not a single bullish sign on NIO yet; • I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analyses!
NYSE:NIO
by Nathan_The_Finance_Hydra
4
SPX: Reacting above a SUPPORT LEVEL! What to expect next?• The SPX is reacting today, but it is not an amazing reaction yet; • The fact it is holding above our support at 3,818 is interesting, but it has yet to break its key resistances in order to reverse the bearish sentiment; • As mentioned in our previous post (link below this analysis), the 3,911 is the main resistance, which is close to the 21 ema in the daily chart as well, making this a dual-resistance area; • If SPX breaks this resistance, the next technical resistance is only at 4,083; • On the other hand, let’s pay extra attention to our 3,818 support level, as if the index loses this area, the next stop is the 3,744; • Let’s wait for more clues. Probably we’ll see more definition this week. Remember to follow me to keep in touch with my daily analyses!
SP:SPX
by Nathan_The_Finance_Hydra
5
SPX: Trading around a KEY SUPPORT level! What's next?• The SPX is still trading at its key support level, just above the gap support at 3,818; • The trend is still bearish, and if it loses this support level, it’ll resume the bearish sentiment to the next support level, which is at 3,744; • However, the index is trying to bounce, as we saw some bullish reaction last week; • Any bounce would have to face a major resistance level around 3,911. The 3,911 is a key point that worked as a support and resistance multiple times in the past, and it is where the 21 ema is right now; • As long as the index stays between these key points, nothing new will happen; • Either way, I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analyses!
SP:SPX
by Nathan_The_Finance_Hydra
4
SPX: Could it REVERSE? Pay attention to these KEY POINTS!• The index is on “bear mode” again, as it is doing lower highs/lows in the 1h/D charts, and it is trading below the 21 ema; • It did a technical bullish candlestick yesterday, a Hammer, closing above the 3,818 (gap support). This is a sign of strength; • Despite the bullish reaction, this Hammer wasn’t triggered, and the SPX has to break other key points in order to reverse the bearish sentiment; • First, there’s the 21 ema in the 1h chart. Second, it has to fill the previous gap at 3,868 (1h chart), making it an Exhaustion Gap. Only if SPX reacts in this specific way I would be convinced that the “bear mode” might end; • For now, I’ll stick with my original view: Since it is losing the support at 3,818 and it lacks bullish reaction, the next support to aim is the 3,744. So far, there’s no technical reaction that could convince me otherwise; • I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analyses!
SP:SPX
by Nathan_The_Finance_Hydra
1