Windows as they are called in Japanese Candlestick Charting, or Gaps, as they are called in the west, are an important concept in technical analysis. A Gap Up occurs when the open of Day 2 is greater than the close of Tweezer pattern forex news 1. Contrastly, a Gap Down occurs when the open of Day 2 is less than the close of Day 1. There is much psychology behind gaps.
Resistance: Once price gaps downward, the gap can act as resistance. Support: When prices gap upwards, the gap can act as support to prices in the future. Often after a gap, prices will do what is referred to as “fill the gap”. Think of a gap as a hole in the price chart that needs to be filled back in. Traders and investors see anything below the gap as an area of no return, after all, there was probably some positive news that sparked the gap up and might still be in play for the company.
Gaps are important areas on a chart that can help a technical analysis trader better find areas of support or resistance. The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance. 404 – File or directory not found. The resource you are looking for might have been removed, had its name changed, or is temporarily unavailable. Our network of expert financial advisors field questions from our community.
Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. A celebration of the 100 most influential advisors and their contributions to critical conversations on finance. The latest markets news, real time quotes, financials and more. A hammer occurs after a security has been declining, possibly suggesting the market is attempting to determine a bottom. The signal does not mean bullish investors have taken full control of a security, but simply indicates that the bulls are strengthening.