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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.


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