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Gaps

Learning Price Action Through ObservationLearning Happens when you're open and curious and making observations from what you see. From there, you must be mentally balanced to take action on your observations. In this post, I focus on the price action that happens in the pivot portion of a swing cycle. If you make observations of this area you will see a certain kind of repeating behavior that can help you understand and design methods for trading swings. You will notice that the market likes to wash everybody out of their positions before pivoting to continue its swing. I have a look at two of the ways this shows up in the price action of a pivot. The first is an engulfing bar that expands and swallows at least 3 of the previous bars. The second is a Gap Swap where there will be a WRB Gap making an effort in one direction just to be followed by another WRB GAP that reverses that effort and direction and shows that the balance of power has shifted. This is just a small part of what makes up a swing but it factors into my overall methods and trade plan. You can make observations yourself on pivots and see what you can learn. Shane
NYSE:STNGEducation
by ShaneBlankenship
Tracking The Footprints of WRB GapsThis is the first in a series of posts on Gaps. Gaps are a sudden supply/demand imbalance that shows up in the price bars of a chart, It's the expansion that comes after a contraction. Gaps will show us a significant area of buyers/sellers that take control and when they lose that control. In the video, I discuss and define a Wide Range Bar (WRB) Gap and show how to mark it out on a chart. A WRB Gap is a bar larger than the last 3 bars with a space between the previous bar and the subsequent bar. We will be marking the base of the gap. If it's an up Gap, mark out the bottom 1/3 of the bar, if it's a down gap, mark out the upper 1/3 of the bar. We can then make observations about how price interacts with the base of this gap when or if it gets there. Then begin to notice where in the swing process the Gap is happening. Don't make conclusions, just observe and learn. There are many ways to trade Gaps but first, we must first lay out some foundations and then come up with objective ways to see them. For now, simply look for the biggest ugliest bars on your chart and mark them out and observe. These are footprints that we can follow and track. Shane
AMEX:ARKKEducation
by ShaneBlankenship
2
Gaps and How Markets Move In Contraction and ExpansionThere are several ways to trade gaps but first, there should be a solid understanding of what Gaps are and how they show up. Markets aren't that hard to read if we have some simple ways to see them that adhere to the principles of movement. All markets move in contraction and expansion. A Gap is the sudden supply/demand imbalance that comes out of the contraction and shows up as the expansion. These expansions can even be used to measure how far the next expansion will go. Start with a simple bar chart and erase everything else off the chart. Look and simply see the dense areas of contraction (Range). Then see the expansion (Gap), followed by another contraction. Look for same-size contractions and expansion and you will start to see how organized price flow can be. It's no different than swings in that minor contractions and expansions make up the major contractions and expansions. Shane
NASDAQ:KTOSEducation
by ShaneBlankenship
19
The Gap Between What Is and What Will BeThere are 5 basic ways to trade a Gap or any line. In this video, I discuss two ways to enter the market using a Gap before I make the trade plan. The Gap entry techniques by themselves are of little use, but if we make a few distinctions in market structure and the process of a swing cycle, they can become functional. Swing cycles have a process that they go through. As long as we understand that process we can view Gaps in the light of where they happen in that process. I'm going to focus these two Gap entry techniques in the lower portion of the reaction leg at the bottom pivot of a swing. The Gaps are what make up the pivot portion of the swing. If you observe markets and swings you will often see this distinct pivot portion of a swing, it looks like a U at the bottom of a reaction leg as the buyers wrestle control back from the sellers. Shane
NYSE:RBLXEducation
by ShaneBlankenship
9
This #1 Stock Will Shock YouBecause this stock was in the news the whole week Honestly -- i didnt think anything would happen to it -- It made a surprise gap The one i have been telling you about -- This gap happend on thursday Right after the market open -- If you missed this trade dont worry there are always good trades -- every week The question is which one will it be next week? -- Watch this video to find out this stock which gaped and cause a media frenzy - --If this video helped you Like it and share it -- Cheers, Lubosi Forex
NASDAQ:NVDALong
by lubosi
2
Beautiful Make UpToday I got sent a lot of positive vibes about the methods I've been sharing so I wanted to give back. There are two great setups that a friend found I wanted to share on NYSE:REV and NYSE:EL . I don't know anything about the industry of women's makeup but I know when price action is beautiful! Both of these had some great around-earnings price action that is a testament to how great trades can be found Before AND After earnings on stocks. STOP BUYING OPTIONS RIGHT BEFORE EARNINGS! The action you want to play is in the weeks BEFORE and AFTER earnings! What makes price action a Beautiful setup to me is when the 50% Retracement lines up with past price inflections. Highs, lows, and gaps are fantastic to confirm Support and Resistance levels. EL demonstrates this beautifully!
NYSE:ELLong
by norok
Very "old" trend-line in Starbucks - **IT WORKS**Good morning traders, Starbucks NASDAQ:SBUX hit a very strong Trend-line. We connected two points that are several years away and it's really interesting because it really stopped the market! This analysis contains not only a description of the current situation but is also partly EDUCATIONAL. The video content is as follows: 1. Market Profile (PinBar) 2. Volume Profile 3. Value Area 4. Trend-lines 5. Gaps 6. Zone trading We combine these points to create the whole picture. In the future, we plan to set up an alert manager for this type of trades so we can share it faster. Have good trading, FINEIGHT team
NASDAQ:SBUXLong
by Fineight
Quick description how I use gaps in my decisions This video was more for a few of my friends asking me how I use Daily, Weekly, and Monthly Gaps for intraday trades. In my opinion, they are support and resistant zones. Combine them with trend channels and correlate between a top, middle, or bottom of a channel with a gap and it gives you I think a stronger direction indication. I combine the W5T Elliot Wave, BITS, and Roller Coaster indicators as confirmation of what's going on and to find opportunities that I didn't see or haven't drawn my channels on it.
CME_MINI:ES1!
by JDubTickTrader