How to Trade the Different Gap Types!

Sergeant Posts : 184 Join date : 2022-06-08

Gap Trading: Different Gap Types. What are trading gaps? For me a gap is important as it signals a shift in the agreed value of a particular asset. We often tend to think of gaps as one but there are many different types of gaps in markets. The good thing about categorizing the gap type is that you can then come up with a playbook for them. Let's imagine we have a daily chart. We have outside range gaps and inside range gaps. On the outside range gaps there are much more extreme moves. Always ask yourself - is this a continuation gap or an exhaustion gap?: