top of page

Trading Market GAPS

Typically traders view gaps to always close in the market. This is a general theory amongst traders. When we open on the market a Fibonacci retracement is drawn on the open to the previous day's close. The general accepted rule amongst traders is that the gap will close within a few days at least to the 50% retracement level.

After the gap has closed there comes an opportunity to go long on the 50% retracement level with a take-profit measuring 1:1 based on the size of the gap. The end result should form a quick AB=CD structure.

117 views0 comments


bottom of page