Om Namah Shivay
Brothers, Let us discuss on "How to Trade the Gaps" - ( part 1 )
During the trade progression, many gaps happen. There is no hard and first rule to restict them based on count, or based on where gap can happen / where it can not happen.
There is nothing like that. Gaps can happen anywhere during the trend.
Say we want to...
Nifty is showing a gap up around at 9550, however it may see a resistance at 9600 which is a Gap low. can act as resistance. if it above sustain above it intraday it can go upto 9730 followed by 9770 and 9880.
What is exhaustion?
The exhaustion is a stage at which buyers are tired out(in an uptrend), either because the price made a new all time high too fast with a huge gap (where the valuations are unacceptable for the buyers) or the price ran too fast into a resistance zone where the buyers do not want to buy because of supply risk at the resistance.
Normally...
This whole month what I've observed is that Nifty always fills the *opening gap ups/downs* usually the same day or the next day.
Could be useful for next such move by nifty.
As they say, history tends to repeat itself.
Please do you own analysis before taking any trading decisions.
