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.
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.
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