Then it would analyze, 10 yrs chart, made of 1 min candles, in a splash of second (?)
Trading Gaps: most important factors to consider
- Thread starter rmyers11
- Start date
no... what I meant was in longer time frames there are so few stories that machines don't have much to learn
Breakaway gaps & island gap reversals when the RVOL is spiking way over the long term avg by at least 4X can make for some great trade setups for day & swing traders - these gaps show sentiment at extremes - this is is a good way to get into the big parabolic moves that are highly directional- making a large reward to risk skewed in your favor.
The biggest moves typically are from breakouts after several months of price consolidation - unexpected news is often the catalyst to spark the stampede by the mobs lined up for miles to get in or out.
The biggest moves typically are from breakouts after several months of price consolidation - unexpected news is often the catalyst to spark the stampede by the mobs lined up for miles to get in or out.
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I trade YM gaps. I try to put together a recipe of why gaps should fade or not. I look at longer time frames to check on trends, then to a 30 min charts to see if anything technical is developing, volume. I watch for exhaustion and break away gaps especially close. I find they give free trading options to gain entry & exit. I find all gaps fade eventually. Some quicker than others. I think short stops makes trying to fill these gaps unprofitable.