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😌.
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 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👇.
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😎.
Not
New lesson:
🟢Support🟢 & 🔴Resistance🔴 in TradingView Land !!!👨🏫
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