You have to die before becoming a successful trader

O(1) said:
how many times does one have to die?
More...

Good question :)

Until we achieve what we desired for, transformation must be a continuous thing.

Transformation is the process of dying and taking new birth.

Transformation is not a destination. It is a way of life.
 
Overnight said:
What is an overnight gap?
More...

If we see the eod chart we can find that occationally there will be day openings which is either considerably greater or lesser than previous day's close due to some previous day's news or some unknown events. We generally call it as overnight gaps because it is conceived overnight and manifested next day morning as gap in the open price.
 
Last edited:
rajesheck said:
If we see the eod chart we can find that occationally there will be day openings which is either considerably greater or lesser than previous close due to some previous day's news or some unknown events. We generally call it as overnight gaps because it is conceived overnight and manifested next day morning as gap in the open price.
More...

But how can orders be placed in a market that is "closed", when no trading is possible?
 
rajesheck said:
I am talking about eod chart not order placing. :)
More...

Hmm. So why does the gap occur, since everyone has access to the same data? Could one not also place themselves in the same position as all these others who cause the gap to occur in the first place? Perhaps an example shown on a chart would help me understand the "overnight gap".
 
Overnight said:
Hmm. So why does the gap occur, since everyone has access to the same data? Could one not also place themselves in the same position as all these others who cause the gap to occur in the first place? Perhaps an example shown on a chart would help me understand the "overnight gap".
More...

Technically speaking the reason is the pre market entries. Theoretically as i said it is the overnight development of speculation.

Can someone post a good eod chart to show the gap ups or gap downs?
 
Gaps are discontinuities of price range between one bar and the next. They may occur on any timeframe, and depending on which timeframes you're looking at, for different reasons. On very short timeframes, gaps may be seen a sign of low liquidity/volume on higher volatility, so price tend to "jump" all over the place and some bars may be missing volume even. For exchanges that only trade during certain hours, gaps happen because even though no trades happened on the exchange, the markets and world continue to trade and evaluate. So on the opening, participants may have vastly different orders in than on the evening before. For markets/exchanges/brokers trading 24/7 and high liquidity, gaps are much less of an issue.

Gaps happen because people may agree on vastly different prices within any period of time. Exchanges and brokers do implement rules to avoid the worst offenders though (circuit breakers, limitations on order prices, trade-halts, trade-rollbacks, etc.).

Gaps play such a big role in many people's trading, they name them according to context: http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:gaps_and_gap_analysis

The concept of gaps are really chart-specific though. As in if you list the orders individually, gaps cease to have any meaning. So they only have meaning in certain ways people usually aggregate price-data. It's a range where no trade happened, but resulted in volatility all the same.
 
You must log in or register to reply here.
Back
Top