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Gaps In Forex

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Gaps In Forex

Postby david fx » Thu Sep 20, 2012 7:37 am

Gaps found on the price referred to in the chart area, where there is not any single transaction has occurred, the pattern is formed due to a vacancy, either buying / selling due too flooding trustee sale / purchase. Gap formation leading to reflect the strong market, while the opposite direction, leading to a lower gap reflects the weak market. However, they reflect the potential strength of price movements will follow at a later date.

Gaps can be divided into several sections, namely: Common, Breakaway, Runaway, and Exhaustion.

A. Common Gaps
Common Gaps like these we often encounter, which immediately closed the gaps later. Examples of events that directly gaps closed or closing windows. Common gaps usually appear on the atmosphere conditions experienced price movements in a particular price range or area that subsequently retained a very strong pressure to move. Be careful with this type is very good but if in doubt move like this also provides an opportunity to get a chance.

B. Breakaway Gaps
Breakaway gaps are very interesting. Subject This occurs when the price breaks trading range or area are retained. To understand these gaps, one must understand the natural processes in the retained area. That price is moving in a certain price range in recent periods. The point where the price has a price breakout support as well if you are experiencing downward breakout point at which the new prices in the travel will be resistance.

Good confirmation of trading gaps is you should look closely at how formations are formed. For example, the price has pressure at the point where it has approached the support, then you should begin to pay attention to this incident.

C. Runaway Gaps
Runaway gaps portray it very clear that there has been much pressure that can affect the price movements when prices are moving sharply. A statement from a trader that runaway gaps is a measure to determine how long the trend will stop. This theory says that the size of these gaps is the half of the movement. Although difficult to prove these words, but at least help us to be more vigilant when running transaction.

D. Exhaustion
Exhaustion gaps is a movement going on where the price is nearing the end point of a movement of the down trend or up trend. Where there are several signals that indicate that the trend will end, one of which is Exhaustion Gaps. What distinguishes runaway gaps with exhaustion gaps are gaps is euphoric sense of movement a price that was not able to continue.

So this article on the understanding that there are gaps in the trading world.

david fx
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Re: Gaps In Forex

Postby Haley12 » Thu Sep 20, 2012 10:15 am

I found same question at titled "Types of gap in forex trading" Source: however there was not detailed info about gaps in forex. Thanks to describe each types in details.
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Re: Gaps In Forex

Postby Deacy » Sat Sep 22, 2012 7:57 am

The gap technique goes into a LONG place if a place has started out below the low of the past day by more than a given quantity and then goes into returning into the variety of the past day by infiltrating returning up through the low of the past day by a given quantity. The business prevails using a stop-loss.
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