Trading gaps in the financial market is a lucrative trading business if one graps
when and where gaps often arise. Each trading gap is distinctive with its structure.
Due to these factors, professionals customarily rely on the most influential trading
gaps methods. There are three principal trading gaps methods.
Image = "Candlestick chart that is exhibiting a stock gap"
Trading Gaps Method One
A financial security gaps up as of point A to B then continues to rise (natural price
progression) to C. Price point C is the 138.2% Fibonacci expansion of the price-action
from A to B.
(and below) the price point C. Indeed, a high probability bearish trade setup largely
takes place near the point C. Notice that these are often (not always) speculative,
or exhaustion gaps.
To know more, check out the video play list at the end of this page.
The contrary of the bearish trading gaps method one consist of relying on a valid
bullish trade setup at point C while a stock gaps down from point A to B then
continues to decline to C.
Video: Trading Gaps Method One
Description: Trading gaps method one is a specific trading method for
trading both speculative and exhaustion gaps like a pro.
Watch the full length of this gap trading tutorial.
Trading Gaps Method Two
depreciate to C (C is equal to the 138.2% Fibonacci extension of the price-action
from A to B). Contrary to the trading gaps method one, the financial instrument breaks
below price point C that turns into resistance.
Astute day and swing gap traders in this instance, see a bearish continuation
(or run-away) gap trading setup, and focus on bearish gap trading signals on or near
On the other hand, professional gap traders will prioritize bullish trading signals on
or near point C if the stock or financial security breaks above the price level C and
Trading gaps method two is the largely rewarding gap trading strategy since it capitalizes
on continuation (runaway) gaps that frequently occur during the third bullish or bearish
Video: Trading Gaps Method Two
Description: Trading gaps method two is a practical explanation of one can trade
continuation gaps like a professional trader when day or swing trading.
Trading Gaps Method Three
A commodity or stock gaps up from the price level A to B (typically after a consolidation or
accumulation) during a bullish price-action then pulls back into the sweet spot support
zone sandwiched between the fifty and sixty-one point eight percent Fibonacci retracement
levels of the gap.
Subsequently, intelligent gap traders will bring into play a top-down trading method to trade
this exceptional high probability trade setup.
Video: Trading Gaps Method Three
Description: Trading gaps method three is a trading video that reveals to day and swing
traders how to trade opening gaps like a professional trader without fooling
oneself. Learn and understand more.
The trading gaps method three is right and proper for trading first Elliott Wave gaps or breakaway gaps.
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