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PSNY Giant Falling Wedge (reversal) Weekly & DailyFalling Wedge Pattern for PSNY chart, Polestar In this chart analysis, it's evident that there's a potential buying opportunity if we manage to reclaim the indicated level (previous gap after Earnings). This could take 30 to 45 days, as institutional investors are not very interested in buying this stock. However, it's crucial to exercise caution and patience, especially considering the need for a CMF (Chaikin Money Flow) reversal within the green zone. While there's a possibility of a lower buy-in, it's important to remember that there are no guarantees of a bounce at this stage. Traders should keep a close eye on CMF indicators to confirm a favorable entry point before taking action. In addition, is there a potential positive divergence in the PPO (in formation)
NASDAQ:PSNYLong
by Maximus20000
Can Bullrun Start Without Gap Fill? 🌄🕳️ The Gap Dilemma: Price gaps occur when there's a notable difference between the closing price of one trading period and the opening price of the next, often seen on the charts as a "hole" in price action. 🔍 Gap Filling: Traditional market wisdom suggests that gaps tend to get filled, meaning that the price revisits the gap area and trades within it. In Bitcoin's case, this could mean a retracement to fill a previous gap before further upward movement. 📈 Historical Anomalies: Interestingly, Bitcoin has shown a tendency to defy this norm. In its historical price data, there have been instances where significant bullish trends started without revisiting or filling previous gaps. 🌐 Market Sentiment: Bitcoin's behavior often reflects overall market sentiment. If there's overwhelming bullish sentiment, it might bypass gap filling and initiate an upward move. 🚧 Caution Required: While Bitcoin's past actions might suggest the possibility of such scenarios, it's important to approach each situation with caution. Market conditions can change, and historical patterns don't guarantee future outcomes. 💡 The Takeaway: Bitcoin's unique nature means it doesn't always conform to conventional market expectations. While gap filling is a common phenomenon, the cryptocurrency has demonstrated the ability to start bullish trends without revisiting these gaps. In trading and investing, adaptability and a comprehensive strategy are key. Keep a close eye on market sentiment, technical analysis, and news developments to make informed decisions. Remember, there are no absolutes in the crypto world, and flexibility in your approach is your greatest asset! 📊🚀
CME:BTC1!
by AlexWhale
Cryptocurrency Analysis: Insights from the World of Cryptos 👋 Hello, esteemed cryptocurrency enthusiasts! Today, I want to share observations from the world of cryptocurrencies, specifically focusing on BTC. Recently, a notable event occurred on our chart: an open Gap at the level of 27400. It's crucial to highlight all open gaps on the chart, as they can influence the future dynamics of price movement. Regarding the last 10 daily candles marked in red, this is an intriguing phenomenon that may indicate a certain pattern. It's important for us to delve into past similar situations and attempt to comprehend the implications behind these red candles.
CME:BTC1!
by CHOWTRADE
2
NQ - Bearish Divergence (short term pullback imminent?)A bearish divergence can be seen on both the SPX and Nasdaq (with similar divergences also seen on most of the FAANGT stocks), coupled with the fact the indices are now in the overbought territory, a pullback in the near future could be likely. We saw both NFLX and TSLA sold off after hours despite strong earnings announcements. The market has been running into earning season and a correction would not be too surprising even if earnings are good ("buy" on expectations and sell on "news"). That said, divergences on the daily chart usually predicts a short term reversal (lasting several candles on the average) and not a predictor of a bigger trend change (unless seen on larger time frames like the weekly, if not monthly). The market remains in uptrend with good support around 15100 - 15300 region. This is an area comprising: 1. a horizontal resistence turned support 2. the 50% to 61.8% fibonacci retracement of the recent AB swing 3. gap fills @ 15300 and also 15120 However, be wary should it break the support @ 15100. So let's see what happens. 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 (probably the most) important! Take care and Good Luck!
TVC:NDQ
by Juliac
SPY close analysis 8/9/2023Gaps, gaps, and more gaps! Let's talk about that "holy moly gap." Bulls keep defending it. Every wick is being bought right up. That said, the bulls have failed to close into the gap above completely for 2 days straight. Time is running out for the upside (leave that gap above unfilled long enough and it'll become resistance) and CPI is tomorrow. Anything could happen in this support/resistance sandwich. I remain optimistic for upside and a test of 469 before a major meltdown.
AMEX:SPY
by upslidedown
UPWK - emerging from base (buy the dips)UPWK has been forming a base with neckline around 14.50 -15.35. Upon earnings announcement yesterday, it gapped up decisively on huge volume, rising a crazy 44%, and closing right at neckline. What is clear is that it could be near the end of its base building and could begin to start trending up in the coming weeks. The entry is tricky now due to its oversized move in a single day, hence I would prefer to see some pullback from here to look for opportunity to enter at the dips (fib-retracement level, candlestick reversal setups etc) A more conservative approach is long only when it has cleared the neckline above 15.35. It may sound counter-intuitive to buy at hgher prices but in actual the odds of a sustainable trend is also increased when the stock is able to clear a significant resistence (namely, the neckline). 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 (probably the most) important! Take care and Good Luck!
NASDAQ:UPWKLong
by Juliac
4
INTC - Bullish CUP (and handle?)INTC first broke out of it's base neckline @30.50 (as well as it's 200 day Moving Average) on 29 March. However, its movement has been very erratic since. Last Friday's post earning's strong gap up changes the picture considerably IMO as it has now completed a "CUP" formation (a bullish pattern with higher odds of success). 2 possible scenario could happen next: 1. it breaks out of the CUP with hardly any pullback (ie no "handle" being formed) or, 2. it begins to from a "handle", which is likely to be a shallow 38.2% fib retracement towards 34.90 where it fills the recent gap. This level is just arbitrary but in any case, a pullback would provide a less risky opportunity to long (or add to) the stock with a stop just slightly below 33 (61.8% fib retracement). When the stock eventually breaks out of $39, then the next target @ $43 is in sight, although expect it to move in a zig zag fashion up. p/s targets are for shorter term traders, who may prefer to take profits and look for opportunity again during the next pullback. 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!
NASDAQ:INTCLong
by Juliac
VRM Vroom 2X Upside PotentialIf you haven`t bought VRM here: Now VRM, Vroom, with its recent gap at the $4.50 - $5.10 level, presents an intriguing opportunity for investors. Historical data indicates that gaps tend to fill 80% of the time, making this gap a potential target for short-term traders and investors. The gap acts as a magnet, drawing attention to that price area. As bullish sentiment grows, the likelihood of the gap filling increases, potentially driving the stock price higher. My price target is $5.10. Looking forward to read your opinion about it.
VLong
by TopgOptions
4
Dollar General to close it's gap?Dollar General - 30d expiry - We look to Buy a break of 173.33 (stop at 167.33) We are trading at oversold extremes. In our opinion this stock is undervalued. We have a Gap open at 01/06/2023 from 201 to 179. The bias is to break to the upside. 173.09 has been pivotal. A break of the recent high at 173.09 should result in a further move higher. Our profit targets will be 188.33 and 191.33 Resistance: 173.09 / 179.20 / 200.00 Support: 166.00 / 161.00 / 155.00 Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
NYSE:DGLong
by VantageMarkets
Exploring Forex Trading's Price Gaps: Opportunities and RisksWithin the realm of forex trading, price gaps emerge as a frequent and remarkable occurrence, distinguished by substantial disparities between an asset's closing and opening prices. These gaps materialize due to an array of factors, encompassing shifts in investor sentiment, alterations in market liquidity, and the dissemination of consequential news. Acquiring a comprehensive understanding of the diverse types of price gaps, their underlying causes, and the implications they carry assumes paramount importance for traders aiming to effectively exploit these market opportunities while astutely managing the associated risks. Price gaps come into existence when a discernible void arises between an asset's closing price on one trading day and its subsequent opening price on the following day. These gaps manifest in a variety of forms, each embodying distinctive characteristics and wielding implications for traders. Among the common types of price gaps are breakaway gaps, runaway gaps (also referred to as continuation gaps), and exhaustion gaps. Breakaway gaps frequently manifest subsequent to a period of consolidation or a significant market event. These gaps act as a signal of potential trend alterations, offering traders opportunities to establish new positions in alignment with the emerging market direction. Runaway gaps, conversely, arise within an established trend, reinforcing its continuity. They serve as a testament to surging market momentum, often propelled by fresh developments or an influx of trading activity. For traders who have already positioned themselves in line with the prevailing trend, runaway gaps provide affirmation and the potential for further profits. Exhaustion gaps surface towards the conclusion of a trend, heralding a prospective reversal or temporary pause in the prevailing market sentiment. These gaps are frequently accompanied by dwindling trading volume, serving as a cautious indication for traders to reassess their positions and adapt their strategies accordingly. Comprehending the causative factors behind price gaps is indispensable for traders seeking to decipher their significance and seize potential opportunities. Price gaps can arise due to sudden shifts in investor sentiment prompted by news releases, economic indicators, or geopolitical events. Moreover, market liquidity discrepancies, particularly during periods of low trading activity like weekends or holidays, can contribute to the occurrence of gaps. Traders must meticulously evaluate the implications of price gaps and remain cognizant of the associated risks. While gaps can furnish lucrative opportunities, they also entail potential challenges. Swift price movements during gap openings can lead to slippage, wherein executed orders are filled at prices significantly divergent from the intended entry or exit levels. Additionally, the scarcity of liquidity during gap periods can yield widened spreads, underscoring the importance of deploying appropriate risk management techniques. To adeptly navigate price gaps, traders can employ an array of strategies. These may encompass the utilization of gap trading techniques that harness the initial price movement following a gap, or adopting a more cautious approach that awaits confirmation of the market's response before entering a trade. Furthermore, implementing stop-loss orders and trailing stops can help mitigate risks associated with adverse price movements. Do Gaps Always Close? The closure of gaps in trading is not guaranteed, but statistical data suggests that gaps are closed at least 70% of the time, particularly when looking at weekly gaps. However, it's important to note that not all assets reach such closure levels. Among currency pairs, EUR/JPY, GBP/EUR, and GBP/JPY tend to exhibit a higher tendency to compensate for price gaps. Exhaustion gaps are generally considered the most reliable for closure trades. When attempting to forecast gap closure, it is advisable to analyze the technical chart patterns alongside the fundamental background. If there is a divergence between these factors, it may be wise to exercise caution and refrain from engaging in active trading. In such cases, it is recommended to rely on the forecasts of other instruments to shape the overall trading outlook. Gaps can pose risks for traders in certain situations: 1) Small trading deposits: If a trader is operating with a limited deposit that does not allow for position insurance when faced with significant and unfavorable price gaps, it can be risky. Insufficient funds to cover potential losses from a large gap can result in substantial financial consequences. 2) Lack of proper risk management: If a trader fails to set appropriate stop-loss levels or neglects to place them at all, particularly when holding positions over the weekend where gaps commonly occur, it can leave them exposed to significant losses if the market moves against their forecast. 3) Random price gaps in low time frames: Gaps that appear sporadically in lower time frames can be misleading and confusing. To avoid making impulsive decisions based on such signals, it is important to synchronize the analysis with fundamental events and consider incorporating technical indicators into the trading strategy. Traders who pursue short-term trading with small profit goals are particularly susceptible to the risks associated with price gaps. Even a small gap can lead to losses for this category of traders, as their profit margins may be narrow. In contrast, mid-term and long-term traders typically have less concern about the impact of gaps. Their trading strategies aim for larger profit targets, often spanning hundreds or thousands of points, where the impact of a single gap of a few tens of points is relatively insignificant. Using Price Gaps In Trading Practice: Price gaps can be utilized in trading practice using market and pending orders to take advantage of potential opportunities. Considerations such as the probability of closure, gap size, and time frame are taken into account. For instance, in a 30-minute time frame, if a price gap of at least 20 points is observed at the market opening, the price tends to move within the gap for the first half-hour due to inertia. In the case of a bullish gap, a market order to buy can be placed, while the Take Profit level can be determined using additional analysis tools. Similarly, for a bearish gap, a sell order can be activated. If a gap appears against the prevailing trend, the likelihood of the gap closing increases. In such scenarios, pending orders like Buy Stop for an uptrend or Sell Limit for a downtrend can be effective. One of the challenges is setting an appropriate Stop Loss. Take Profit levels can be adjusted, considering factors such as the Friday closing level, slightly above it, or at local peaks (maximum or minimum) observed on Friday. It is crucial to exercise caution and consider risk management techniques when trading based on price gaps. Traders should thoroughly analyze market conditions, employ suitable order types, and carefully determine their entry and exit levels to optimize trading outcomes. In conclusion , price gaps in forex trading serve as important indicators of market dynamics and present potential opportunities for traders. By analyzing the type of gap, incorporating support and resistance levels, and utilizing technical indicators and candlestick patterns, traders can make informed decisions to capitalize on these market phenomena. It's essential to note that gaps do not always close, and traders should be mindful of this fact. To enhance trading strategies, it is beneficial to align technical analysis with fundamental factors and consider the broader market context. Caution should be exercised, especially when trading with smaller deposits and during periods of increased market volatility, in order to manage the risks associated with price gaps effectively. By incorporating thorough analysis and risk management techniques, traders can navigate price gaps with greater confidence and optimize their trading outcomes.
Education
by FOREXN1
10
SMG Gap UpScotts Miracle Grow is up +7% and trading above $70 after a gap up this morning - trade was initiated last week on the falling wedge breakout. Gaps tend to get filled so I've adapted to the price action and moved my stop-loss order up to just below today's candle at $68.45. No way to lose money on the trade now if price reverses, upside target remains near $80. Lower PPO and TDI indicators are still reading bullish and increasing in their bullish trends. Buy Price: $64.34 Stop-Loss: $68.45 Take-Profit: $80-ish Gain on trade if I get stopped out at $68.45: +6.3% Gain on trade if price reaches the take-profit level near $80: +24%
NYSE:SMGLong
by PrepForProfit
2
ZS - opportunity to buy this dipZS gapped and broke above a neckline "zone" (142 - 145) on 2nd June, eventually hitting a high of 162.67 before retracing all the way back to the neckline. The stock is still in the early stage of an uptrend as it is now trading above it's 200 day moving average (with a golden cross that happened last Thur). "Breakup and retest of a neckline" often provides a 2nd opportunity to long as stock rebounds back above the neckline. However, in ZS' case, the rebound that followed after the initial retest of the neckline was feeble at best. After whipping around the neckline for slightly more than a week, there was a sudden more aggressive sell off last Thursday (6th Jul) as it attempted to close the gap @ 135 that formed just prior to the breakup. The gap closing mission did not succeed as it appeared bulls came back in force resulting in the formation of a small pinbar (bullish) by the day's close. The trigger to long however, came only this morning as ZS began to rise above the neckline decisively. The bulls appear to be back in control again with today's strong bullish candle thus far (a variation of "morning star" formation) . Currently stop loss should be placed just below the mini pin bar that formed on 6th Jul (ie under 138). I suspect we won't see anymore attempt to close the gap @ 135 in the near future (although nothing is guaranteed!) 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 (probably the most) important! Take care and Good Luck!
NASDAQ:ZSLong
by Juliac
RIVN - could break up in near futureRIVN went into basing formation since March 2023, testing the level 15.60 (neckline1) at least 4 times before a successful break up on 29 June, followed 2 days later by a huge volume gap up 3rd July. As of yesterday it closed right at the 2nd neckline @ 21.70, which incidentally is just above it's 200 day moving average (a positive). It's RSI is very strong and there is a reasonable chance it could be breaking above this neckline2 very soon (scenario 1 indicated in red). However, as it is also rather overbought at the moment, we could see another pullback before another attempt to break up (scenario 2 indicated in blue). Long the break of neckline 2 with initial stop loss below 19.30 (the recent 2 candles low). The market is volatile and trade management with trailing stops is a good idea. Balancing between how much wiggle room to give it (ie where to place the stop loss) will take some practice and experience. 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
NASDAQ:RIVNLong
by Juliac
📊 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
NIFTY NEEDS TO DECIDE !Case Study: Nifty seems to be in a crucial position. It can either get stronger to give a flag pole breakout and extend higher in the near future OR BREAKDOWN to cover up the 3 remaining gaps. We know that 99% of the time, Nifty fills its daily gaps and with these 3 pending, an up move will only mean a future down move to cover them up later. It is better for the market if the price comes down to 16,000 filling up gaps only to rebound and create new highs. What do you think??? DISCLAIMER: We are not registered. We are not advisors. The ideas are merely for educational case study purposes. Please consult your financial advisor before investing/Trading.
NSE:NIFTY
by TheChartereds
3
Decoding Bitcoin's Latest CME Gap: An Insightful AnalysisOver the past weekend, Bitcoin experienced a significant sell-off, causing a price discrepancy to form, commonly referred to as a 'gap'. This gap is discernible between the present Bitcoin market price and the closing price from last Friday (as per New York time). Notably, these gaps, often identified in futures markets such as the Chicago Mercantile Exchange (CME), can serve as potential signals for traders. It's currently anticipated that this gap could be filled in the near future. The phenomenon of 'filling the gap' refers to the price retracing its steps back to the level before the gap was formed, thus restoring market equilibrium. The market's response to this development will be closely watched by traders and investors alike.
Long
by p3nchan
1