In the meantime, I'm going to start talking about the gap.
A gap refers to a period of time during which a stock price moves rapidly and sharply without any trading, and is shown as a vacuum area on a stock price trend chart. This area is called a gap gap and is often referred to as a jump. When a gap occurs, after a few days or even longer of movement, and then reverses and returns to the price of the original gap, it is called the closing of the gap.
The gap indicates that the trading group is highly stimulated, and the loser throws away because of a serious loss. If you know that the injured party is multi-headed or empty-headed, you can calculate their next move and trade accordingly.
Some gaps are valid signals, while others are false. When the market crosses certain prices, this is an effective gap. If the market you are analyzing is in a bull market, and this is a continuation of the contract in other markets, then this is a false gap.
Normal gaps are often found in markets that are calm and untrending, often in cold-closed stocks or futures contracts that are delivered in the month.
The normal gap is no longer high after the upward and low after the downward leap. On the day of the normal gap, the turnover may increase slightly, but then return to normal. Since the price is not high or low, the turnover is not significantly increased, representing more/less on both sides.
A breakout gap is a wave of new trends that starts with a large price jump away from a heavily traded area. A breakout gap may not be filled in a few weeks, months or years. The longer the gap lasts, the longer the trend will be.
When the price occurs upwards, the breakout gap may be continuously high for a few days; public finance investments have the same logic, when the price occurs downwards, the breakout gap may be continuously low for a few days. The breakout gap day will break into large volumes of transactions, and the following days will be maintained in large quantities.
Breaking the gap represents a major change in the market mentality. New trends contain a huge amount of momentum, in which case you should immediately master the new trend. Most gaps are ordinary gaps, and will be filled quickly. Professional players prefer to reverse the jump gap.
A continuous gap occurs in the middle of a strong trend, with prices continuing to innovate high or low without filling the gap. It is similar in nature to a breakout gap, the only difference being the location where it occurs, one at the beginning of the trend and one in the middle of the trend. A continuous gap is a new offensive exhibited by market dominance.
A continuous gap can assist in estimating the likely length of a trend at that time. When a continuous gap occurs, the vertical distance from the gap to the trend starting point is measured, and the gap is used as a benchmark to project the distance along the trend direction, i.e. the target price of the trend, which should be ready to close when the price enters the target area.
When a continuous gap occurs, the volume should be 50% higher than the average level of the previous few days. Within a few days after the gap occurs, you are likely to run out of the gap if the price is not always at a new high or low.
Once the gap has been filled, the price will not be able to create new highs or lows, and will then return to the gap to fill it. The gap occurs at the end of the trend, and the gap initially looks like a continuous gap. The gap is likely to be filled if the price does not create a new high or low in the following days.
Only when the price reverses and fills the gap can it be confirmed that it is exhausted. This gap looks like a flashback before death, and the illness seems to be in full swing, but in fact is a harbinger of the oil lamp that is about to run out.
1. A normal gap is not suitable for trading. If you are non-tradable, you may want to reverse the operation. When the price jumps up to zero, immediately release the gap and set the stop loss above the highest price of the last few days as soon as the price is no longer innovative high; at the bottom of the gap, make a profit on the closing of the closing; when the price jumps down to zero, once the price is no longer innovative low, immediately buy in and set the stop loss below the lowest price of the last few days, sell the gap and make a profit.
2. If the price jumps out of the long-term trading range in a big way and continues to innovate high or new low, you are most likely facing a breakout gap. If the price jumps up, buy in early and set a stop at the bottom of the gap. An effective breakout gap is definitely not going to be filled in the short term.
3.连续缺口的交易方式类似于突破缺口——及早买进而将停损设定在缺口的下缘。下降趋势的情况恰好相反。当趋势到达连续缺口所衡量的目标区，应该调紧停止价位。
4.有效的突破缺口或连续缺口随后必须得到价格的确认——连续创新高或新低。否则的话，你很可能碰上竭尽缺口。如果市场没有朝缺口方向创新高或新低，立即结束部位而在场外重新评估。
Exhausting the gap is an ideal trading opportunity because there will often be a sharp reversal of the trend. When you find an exhausted gap in an uptrend, you can establish a gap and set the stop loss at the most recent high. Once the price starts to fall, the multi-head will compete to sell first, and should continue to hold the gap as long as the price continues to innovate low; if the price does not innovate low on a certain day, immediately compensate.
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