Good uptrend can have runaway gaps caused by significant news events that cause new interest in the stock. There is a significant increase in volume during and after the runaway gap.
Recent Events - Tata AGM 2022
This Gaps formed near or the end of good uptrend. Identified by high volume with a large price difference between...
Had put an alert on this level. There was a gap of almost 3.5 per cent on 6th august after its awesome results. Today it is back on that level where it gapped. Now my thesis is that the gap will be filled and it'll bounce back, or the gap will be filled and it'll keep going down. However, I am rooting for the upside considering the news and tata's EV ecosystem...
This is purely for educational purpose only, trading gaps are high risk high reward.
It gives us a reason why a particular stock/index bounced from a particular price.
If you think any gap in Day TF is imp. just mark it and see how it goes before trading them.
If you are an investor, make sure you do not get bull trapped at ridiculously high levels. There will be a correction and profit booking soon because clearly Nifty is in an overbought zone.
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Nope, definitely we are not crying for those missed opportunities. This can be classic lesson for all of Us, we knew Nifty will reach 9900's zone earlier itself but what happened from Monday ? We never got valid setup for Entry though we are absolutely right on direction.
Monday - Technical Glitch & 100 points Up
Tuesday - Bit of range then closed near pullback...