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Gaps

The Ultimate Beginners Guide to Day TradingHello everyone My name is d3ffyduck I am today gonna post some cool and new tips For the beginners in Daytrading. I am gonna divide things in Chapters so you'll learn it with ease Read it till the end Hope You learn something Chapter-1 Timeframe selection The choice of the best timeframe for chart analysis in day trading can vary depending on a trader's strategy, preferences, and the market being traded. Different timeframes offer varying levels of detail and may suit different trading styles.For Example 1-Minute Chart: This timeframe provides very detailed information, showing price movements within one-minute intervals. I prefer Using it for precise entry and exit points In day trading 5-Minute Chart: Slightly less detailed than the 1-minute chart, the 5-minute chart still offers relatively short-term insights into price movements. I use to determine my momentum for the trade i want to hold for like 1-2hrs only 15-Minute Chart: This timeframe offers a broader view of the market compared to shorter intervals. I prefer it to determine my next day momentum of the market Chapter-2 Support and resistance Using RSI I know you all knows the basics for support and resistance but today i will show you the best way. Just open your chart and use RSI Indicator and we are going to mark the overbought areas high candle and oversold area lowest candle using it for different time frames. Just a note from my side do not mark those areas again if there have already a support or resistance line in different time frame and also you can remove those level of S&R which did not hold well in different time frames 1-day time frame=I have marked the regions where the RSI turned in the overbought or oversold areas. As you can see, I have not marked the support and resistance levels since they were already established from previous market overbought and oversold. 4-hour Time frame=In this timeframe, we will only identify the levels that are above 70 and below 30 in the RSI. We'll skip the R&S that are already marked on the daily timeframe. To reiterate, please refrain from marking those levels again if we can observe that our resistance and support levels have already been established on the daily chart. 1-Hour Time Frame = I've set my preferred timeframe to a maximum of 4 to 5 months. I don't want to go below this timeframe as it will create more noise. Additionally, I'll remove the support and resistance levels that didn't react well for buyers and sellers at this point to make the chart look cleaner Chapter-3 Determining the Trend Here in this chapter we are going to use only 2 Things to keep everything simple:- SMA+EMA 200= We are going to use simple indicator or just create yourself one indicator which plots both sma and ema with same 200 timeperiod. Rules are simple if below both ma look for short if above both ma look for long You can use it for 1hr and 15 min for day trading purpose Trendlines- Trendlines are your best friend.They are the building block for your Chart pattern look for trendlines in 15 min tf for day trading purpose Chapter-4 Significance of market opening closing,high,low This is one of the important chapter for day traders and i am going to tell you how an opening closing high and low effect the whole day trade. For Example 1-Open your Chart 2-Mark the opening ,closing highs and lows for previous 3-4 days 3-Those area are going to be area of interest Tip for the beginners. Do not take any trades for the first hour From the opening of the day For example if your market opens in 9:15 am dont take trades until 10:00-10:15 cause of high volatilty Another Tip for the beginners.If you prefer to take 2 trades a day close your previous 10:00 am trade At around 11:45am -12:15 pm and start looking for another one after that. the reason because i have seen this is the time for the most probable reversal or continuation of trend for the next leg of the day Chapter-5 Significance of Gaps in the market Gaps are one of the best way to decide what will be the market trend for the rest of the day There are two type of gaps in the market 1-Gap up 2- Gap down Tip for the beginners Only trade in the strong gap up or down and as i said before do not trade in the first hour of the opening Ill show you some scenarios of gap Trading with respect to opening of the day Scenario 1st strong gap up+ Stayed above above the gap and opening for the 1 hour(9 am-10am) We can see we had a strong opening stayed above the gap up and open for atleast 1 hour so after this the trend is decided Tip for the beginners Always follow strict Risk and Reward ratio like i use 1:1.5 Scenario 2nd strong gap up+ stayed below the gap and opening for the 1 hour(9 am-10am) We can see we had a strong gap up and opening but price stayed below the opening for 1 hour so we took the short as dropped below previous closing/high Similarly we can use this for gap down scenarios Final tip from my side are:- Do meditation for 15 min before trading hours Always use stoploss Use your preferred Risk Reward ratio like 1:1.5 Do not trade in opening Hour Gaps are like your friend Trends are like a path to success Do not overtrade Dont only rely on indicators there isnt any indicator which can make you rich Use only basic indicators such as Ema,Macd,Rsi and ATR PLEASE UPVOTE AND FOLLOW FOR MORE EDUCATIONAL CHARTS AND STRATEGIES
NSE:BANKNIFTYEducation
by D3ffyDuck
1
bajaj finserv educational post #bajaj finserv chart explained 1) The counter was trading in an uptrend 2)It witnessed a strong gap up opening on 4 july 2023 3) The Gap up was above the previous strong resistance zone as indicated by arrows 4)The retracement after strong move already done 5)5_ today it witnessed a strong upmove along with long build up with 3% rise in OI 6) current month option chain suggest shortcovering in Call side while short build on Put side which is bullish 7)its trading with an upward sloping trendline 8) its strongly following the regression channel trend with 97% precision 9)the counter is 14% away from all time hugh which is most likley to be tested in sessions to come
NSE:BAJAJFINSVLong
by pratik2358
Tata Motor - Runaway gaps or Exhaustion Gap (Learning) Runaway Gaps 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 Exhaustion Gaps This Gaps formed near or the end of good uptrend. Identified by high volume with a large price difference between previous days close and opening price. This are quickly filled as prices reverse their trends. Please let me know if I am wrong or rights.
NSE:TATAMOTORS
by sarangmv
2
Trading gaps with a confirmation I'm trading from last 2 years, started from Indian Stock Market and join the cryptos and forex as well yeah may be you will think that I'm a newbie but trust me price action is the real king. Today I am sharing one of my favourite strategy the gap with power candle confirmation, so in this tutorial I'm going to tell you How I personally trade gaps the strategy is very simple and easy to understand. As you can see in the above image the chart is a index chart of S&P 500, there is a gap up opening at 15 October 19:00(UTC+5:30) with creating a gap up in 15 min. timeframe, the gaps are of 3 types and I really don't know the name of the gaps just know how to react on these, now come to the point at 18 October 19:00(UTC+5:30) on 15 min. timeframe the price made a green hammer candle with lows touching the gaps as support and that's the point at the gap if there is a healthy bullish hammer candle then we can initiate a buy trade by placing the stop loss just below the lower levels of the candle and can expect a R:R of 1:1.5 minimum . Don't follow it blindly be sure to backtest this before execution. Happy to share this my first Idea. - NITIN
TVC:SPXEducation
by NITIN_YADAV
3
Nifty:WaveTalks-Bulls Yelling Excitement- The Gap Strategy!!! Bulls Yelling The Excitement- The Gap Strategy!!! When they come together, they are trying to tell you something. --------------------------------------------------------------------- 17950 – Critical Level: The Important Clue --------------------------------------------------------------------- From the last 2 ideas published at TradingView - Crossing above 17950 & not falling below 50 Period Moving Average provided dynamic support to the Index – an important pullback trading strategy that bulls use to participate in the bull run. 50 Period Moving Average shown as Flag Mark + Red Circle (Offered Dynamic Support) --------------------------------- Gaps Strategy --------------------------------- Gaps act as support & resistance which can be used as another trading strategy. Intraday today @ 19thOct2021. Gap 3 held as support & gave bounce from current day low @ 18400 to 18550+ which is currently in progress. -------------------------------- What Next? -------------------------------- Current Fall looks Impulsive in nature from the Highs of 18600’s in the opening session, If holds as resistance & falls below 18550(strictly) then Next dynamic support could be gap 3 once again & if it gets filled- 2nd support shall be close to 18275-18300 zone which is 50 periods moving average. If falls below 50 periods moving average Gap 2 & Gap 1 should act next supports. Thanks for reading!
NSE:NIFTYEducation
by WaveTalks
12
How to Trade on GAPS and real-time identification of Gaps.Price gaps can be classified into four types: common, breakaway, acceleration, and exhaustion , During moments of consolidation, common gaps appear and mean virtually little. The other forms of pricing differences are extremely significant. Breakaway gaps: Early in a trend, breakaway gaps appear. Acceleration gaps are simple to spot and provide a wealth of information. Finally, exhaustion gaps appear late in a trend and signify the start of a long correction or a new opposing trend. What is an island reversal , exactly? It's a price action island, as the name suggests. The exhaustion and breakaway that constitute an island are exhaustion and breakaway. A bearish island reversal would be defined as an exhaustion gap up followed by a breakaway gap down. The Green Zone is entry zone and Red is for risk zone of long entry.
NSE:NIFTYEducation
by Trade-Technique
36
MARKET GAPS - Short and Simple explanationGAPS are areas on the chart where no trading activity took place. In an uptrend, for example, When the opening price is higher than the highest price of a previous day, leaving a blank space on the chart, it will be called a GAP-Up opening. Likewise, in a GAP-DOWN situation, the opening price will be lower than the previous day's lowest traded price. Now we will go through different types of gaps, how to identify them, and what they may signal. TYPES OF GAPS : NORMAL GAP : From the name itself, it's a fairly common type of GAP. Such common gaps are made with lower volume and can be spotted frequently on hourly/daily charts. Common gaps are most likely to be filled . Such gaps can be used strategically to plan entries. For example, when the market made this gap (Referring to nifty chart), I was certain that it will be filled, and as soon as the market touched line L1, I took a CALL position hoping that market will bounce back after filling this gap. BREAKAWAY GAP : Breakaway gap occurs after forming patterns (Triangles, Wedges, etc) or breaking major trendlines signally a possible trend reversal. This gap is formed with heavy volume signaling a significant market movement. Consider this: If an Ascending triangle pattern formation is spotted and there is a break with high volume forming a gap, it's a sign of an uptrend. RUNAWAY/MEASURING GAP : This type of gap occurs when the market is in a particular trend for a while. Runaway / Measuring gaps signals a strong momentum in a trend. Say, the market is in an Uptrend, and a runaway gap occurs, this means the market is strong and will continue the upward movement. In an uptrend, it signals Strength, whereas, in a downtrend, it signals weakness in the market. This type of gap occurs with moderate volume. This is also known as measuring gaps because they generally occur at about halfway in a trend . EXAUSATION GAP : This last type of gap can be spotted at an end of a move. This gap is quickly filled and signals a reversal. For example, the market is moving in an uptrend and an upward gap appears that fails to sustain and slowly fades away. This signals weakness in the uptrend and a trend reversal may happen shortly. Prices closing under the gap will signal that an exhaustion gap has been formed. This type of gap indicates a state of panic in the market . TIPS : Volume is an important factor while identifying gaps. It is important to include other indicators/patterns to confirm the movement while trading gaps. //Healthy discussion is really powerful. Let's start one in the comments. Feel free to through in your ideas// Follow me to get notified of my new posts/analyses, I will be very active on this platform :)
NSE:NIFTYEducation
by pranaytrades
2
MARKET GAPS - Short and Simple explanationGAPS are areas on the chart where no trading activity took place. In an uptrend, for example, When the opening price is higher than the highest price of a previous day, leaving a blank space on the chart, it will be called a GAP-Up opening. Likewise, in a GAP-DOWN situation, the opening price will be lower than the previous day's lowest traded price. Now we will go through different types of gaps, how to identify them, and what they may signal. TYPES OF GAPS : 1) NORMAL GAP: From the name itself, it's a fairly common type of GAP. Such common gaps are made with lower volume and can be spotted frequently on hourly/daily charts. Common gaps are most likely to be filled. Such gaps can be used strategically to plan entries. For example, when the market made this gap (Referring to nifty chart), I was certain that it will be filled, and as soon as the market touched line L1, I took a CALL position hoping that market will bounce back after filling this gap. 2) BREAKAWAY GAP: Breakaway gap occurs after forming patterns (Triangles, Wedges, etc) or breaking major trendlines signally a possible trend reversal. This gap is formed with heavy volume signaling a significant market movement. Consider this: If an Ascending triangle pattern formation is spotted and there is a break with high volume forming a gap, it's a sign of an uptrend. 3) RUNAWAY/MEASURING GAP: This type of gap occurs when the market is in a particular trend for a while. Runaway / Measuring gaps signals a strong momentum in a trend. Say, the market is in an Uptrend, and a runaway gap occurs, this means the market is strong and will continue the upward movement. In an uptrend, it signals Strength, whereas, in a downtrend, it signals weakness in the market. This type of gap occurs with moderate volume. This is also known as measuring gaps because they generally occur at about halfway in a trend. 4) EXAUSATION GAP: This last type of gap can be spotted at an end of a move. This gap is quickly filled and signals a reversal. For example, the market is moving in an uptrend and an upward gap appears that fails to sustain and slowly fades away. This signals weakness in the uptrend and a trend reversal may happen shortly. Prices closing under the gap will signal that an exhaustion gap has been formed. This type of gap indicates a state of panic in the market. TIPS : Volume is an important factor while identifying gaps. It is important to include other indicators/patterns to confirm the movement while trading gaps. //Healthy discussion is really powerful. Let's start one in the comments. Feel free to through in your ideas// Follow me to get notified of my new posts/analyses, I will be very active on this platform :)
NSE:NIFTYEducation
by pranaytrades
Basic of Gap theory(Common gap, Breakaway gap, Runaway, Exhaus )Gaps can offer evidence that something important has happened to the fundamentals or the psychology of the crowd that accompanies this market movement. Gaps can be subdivided into four basic categories: • Common gap • Breakaway gap • Runaway/ Continuation gap • Exhaustion gap -------------------------------------------------------------------------------------------------------------------------------- --> Common gap-: Common gaps generally occur uneventfully or when there is nervousness among the investor and has low volume , generally gap is filled in the future . --> Breakaway gap( Measuring gaps )-: A breakaway gap is those which have high Volume and the chances are more to cover the gap . The traders who have invested in the wrong side need to cover them. A new change in the market has taken place. The point of news breakout becomes support or resistance. --> Runaway gap-: runaway gap has increased in liquidation and those who are holding the position will get panic and sell/buy. the runaway gap is caused by the trading limit imposed by the exchanges. --> The exhaustion gap ( Island-cluster )-: exhaustion gap happens near the end of the movie. Mainly have a high volume and have a large difference from the previous price, in this state of panic long down move is transpire due to a feeling or belief that bad things will happen. exhaustion gap quickly fills a gap when price reverse. I will update shortly Real-Time use of Gap Trading Strategy shortly. Kindly comment, if you have any questions/suggestions for me. You can share your LOVE by giving LIKES .
NSE:BANKNIFTYEducation
by Trade-Technique
72
Nifty!! Take Some Rest, Sync In HarmonyHi all, So finally we broke out of ranges. But the problem is that we are not consolidating, which recalls me of a saying "the quick you gain, the quicker you lose". Yes, we are in strong momentum and everybody is in breakout euphoria. But there has to be a point of saturation, which I suppose is near 11033. I don't say that it will be the end of this rally but may be a brief pause or pullback as we have left a few gaps to be filled. We might also retest the breakout level, which is 10800. Once again I say that I could be totally wrong this time as we may end up pushing higher in a mad euphoric bull market (which would be extremely dangerous). What I am notifying here is a caution at that level, b'coz you know at some point of time the traders like me think of booking profit. Trade safe, stay healthy. Make informed decisions. Regards JJ
NSE:NIFTYEducation
by Bravetotrade
4
NIFTY OBSERVATION 2:- nifty had resistance (R1) at 1935 to 11015 which was formed by Gap created at Feb panic and resistance (R2) at 11137-11170 which was "all-time resistance". we have seen a indecision ( spinning top ) in nifty which was a strong bearish sentiment catalyst but for supporting nifty, we have two small fresh gaps which act as support. we can see old big gap vs new small gaps following days which declares winners bulls(all-time new highs) OR bears (2018 lower lows)
NSE:NIFTYEducation
by harshahacks
Nifty : Why Nifty Why & Do We Cry ?!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 zone ( We can't carry risk overnight, that too when NSE itself unstable) Wednesday - Ranged in the channel, stayed within ( Only Intraday scalping ) Thursday - Gap Up Though we knew direction, we had trade setups in place, this happens in market, It's part of Game. Few will feel, Why Nifty did this to Me ?? I missed 200 points profit bcos of this Markets craziness, NO, Markets for everyone, not against you. Markets will be here forever, so we will get some other chance Next day or later, its not that Nifty will perish after reaching 10k & will be stand still at 10k. So Relax & Move on, Bcos thats what I do now :)
NSE:NIFTY
by InsiderB
19