Types of Gaps !!!ðŸ‘Ļ‍ðŸŦ

āļ—āļĩāđˆāļ­āļąāļ›āđ€āļ”āļ•:
HelloðŸ‘ĻðŸŧ‍ðŸŦ, dear traders from all over the world🗚ïļ.

I'm Pejman🙋ðŸŧ‍♂ïļ & welcomeðŸŒļ to one more educational adventure🧭 in Tradingview, but we will not be tradersðŸ’đ today; We want to look at our charts like a hunterðŸđ.

We look for every clueðŸū we see so that we can hunt suitable positionsðŸ’ą like valuable creatures💰 and transfer them to the cages as our accountsðŸ’ģ or walletsðŸ’ļ.

Although I'm not too fond🙍ðŸŧ‍♂ïļ of hunting, either legally or illegally.

But I know that hunting good positions in the forests🏞ïļðŸŒģ 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 timeâģ✅.

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🔎ðŸū)

Technical Analysis !!!ðŸ‘Ļ‍ðŸŦ


Today I want to introduce one of these clues so that you can become a professional position hunterðŸđ by identifying the clues👀;

But don't forget that you should practice🙌ðŸŧ, be careful⚠ïļ, and watch your positions👀, so you don't miss them or rush 🏎ïļðŸ’Ļto the wrong❌ position🙂.

Today's clue is the GAPS. First, let's see what the GAP isðŸĪ”.

āļŠāđāļ™āļ›āļŠāļ­āļ•

The gap is nothing. I mean, it is something that is nothingðŸ˜ķ🙄.

It is incredibly paradoxicalðŸ’Ĩ! I'm kidding😉, but the space between candlesðŸ•Ŋïļ or bars is called a GAP.

A gap is created when we see👀 a price gap between two candlesðŸ•Ŋïļ or bars when the trading volume is highâŦ or low⏎. This difference or space between two candles is called a gapðŸĪðŸŧ.

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 huntingðŸđ positions, so as hunter traders, we should learn these gaps well👌ðŸŧ.

The reason🧐 for creating gaps can be factors such as important positive🆒 or negative🙈 news or an increase🔚 or decreaseðŸ”ŧ 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👌ðŸŧ between the candles means that the price has jumped like a rabbit🐰 from one number to the upper☝ðŸŧ different number.
āļŠāđāļ™āļ›āļŠāļ­āļ•

Or, like a monkey🐒, it moved from one number to a lower👇ðŸŧ number.
āļŠāđāļ™āļ›āļŠāļ­āļ•

I tried to make it funny😊 and straightforward👌ðŸŧ, but these gaps that move up or down have different types, like the year's seasons🌈☁ïļ.

We have 4ïļâƒĢ seasons in a year and also 4ïļâƒĢ 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 positionsðŸđ💰.

So fasten your seat belts💚 because we want to travel in timeðŸ§ģâģ to all the year's seasons with this postðŸšĐ and learn about the different price gaps, which are one of our cluesðŸū to trap positionsðŸŠĪ.

Let's start with the autumn🍂 season because we are still in it and can understand it better😌.

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The name of this type of Exhaustion ðŸĨą gap.

āļŠāđāļ™āļ›āļŠāļ­āļ•

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 cloudsðŸŒĨïļ.

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.

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The next💁ðŸŧ‍♂ïļ gap is the Breakaway🏃ðŸŧ‍♂ïļ gap.

āļŠāđāļ™āļ›āļŠāļ­āļ•

The breakaway gap is associated with an increaseâĪīïļ in trading volume.

This gap occurs when a critical range is brokenðŸĪžðŸŧ, representing a strong💊ðŸŧ start🏁 trend or a sign of trend change.

Like the bloomingðŸĩïļ of some treesðŸŒģ in winter☃ïļ or the sproutingðŸŒą of plants from under the snow❄ïļ.

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👌ðŸŧ 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✅.

āļŠāđāļ™āļ›āļŠāļ­āļ•

If you want to get acquainted with the most important Classic Reversal Patterns of Technical Analysis, I suggest you read the following post👇.

Classic Reversal Patterns of Technical Analysis !!!ðŸ‘Ļ‍ðŸŦ


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Now it's time for springðŸŒļ🍀, and I'm going to introduce a gap like spring.

Spring season is a sign✌ðŸŧ of the continuation of life💐, and this gap in technical analysis shows the continuation of a trend📈.
āļŠāđāļ™āļ›āļŠāļ­āļ•

The Continuation gap is also known as a Runaway🏃ðŸŧ‍♂ïļ gap, occurring in the middle of a downward↙ïļ or upward↗ïļ 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 ☑ïļ, if this gap occurs in an upward trend🔚, it indicates the continuation of the upward movement.

And when it is created in a downward trendðŸ”ŧ, it indicates the entry of more sellers and further price decline.

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Now we have reached✌ðŸŧ the last gapðŸĨ°.

This gap is Common, but I should introduce it as the summer☀ïļ season.

āļŠāđāļ™āļ›āļŠāļ­āļ•

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🏝ïļ, and Common and Exhaustion ðŸĨągaps fill as soon as a blink👁ïļ.

You may have heard👂ðŸŧ that gaps are always filled, but this is not permanent🙅ðŸŧ‍♂ïļ and only a strong possibilityðŸĪðŸŧ.

For example, Continuation🏃ðŸŧ‍♂ïļ & Breakaway gaps usually take a long time⌛ to fill.

But what if the gap doesn't closeðŸĪ·ðŸŧ‍♂ïļ?

Go to any currency pair and examine👀 the recorded data🗄ïļ; 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⮆ïļ and one down⮇ïļ.

We will definitely✅ learn more about these patterns in the following posts🔜, but today we are only focusing on the gaps🧐.


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Another thing I want to add➕ is about the Heikin-Ashi chartsðŸ’đ that we learned about in the previous post🔙.

Charts Museum!!!ðŸ‘Ļ‍ðŸŦ


Gaps are filtered❌ in Heikin-Ashi charts.

As I said, in this chart, the average is displayed between two✌ðŸŧ consecutive candles; even candlestick patterns are filtered❌.

So, the type of chart is also essential👌ðŸŧ for finding gaps.

Well, I gave you the basic tips to identify these gapsðŸĪðŸŧ, and now you can carefully look👀 for them in your chartsðŸ’đ.

Practice this information for a bit, as I will be back soon🔜 with an educational postðŸ‘ĻðŸŧ‍ðŸŦ 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💊ðŸŧ, and information is liberating. Education📚 is the beginning of progress in every society🏙ïļ, in every familyðŸ‘Ļ‍ðŸ‘Đ‍👧‍👧.

I hope you become stronger🙌ðŸŧ daily by using your knowledge, and I will also increase your progress by teaching you the introduction.

I wish🙌ðŸŧ you happiness, health😍, and success😎.




āļšāļąāļ™āļ—āļķāļ
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