The Chartians
The Chartians

@chartians

7 Tweets 67 reads Sep 18, 2022
Ever lost money in a GAP DOWN or a GAP UP ? You definitely have haven't you !
Here’s a thread explaining why you’re losing and how you can crack it !
What Happens after a GAP UP or GAP DOWN..?
There are so many Interesting Variations on Every scenario.
1) Gap & Continuation
2) Gap & Contraction
3) Gap & Reversal
1) Case of Gapups ⚡️
Respective to Location in Trend.
⚡️Breakaway Gapup & Initiation of Rally
⚡️Runaway Gapup & Continuation of Rise
⚡️Exhaustion Gapup & Reversal
These scenarios can be interchanged if Location or Strength of Gap is not Strong Enough.
2) Case of Gapdown
⚡️ Breakaway Gapdown & Initiation of Selloff/Correction.
⚡️ Runaway Gapdown & Continuation of Selloff
⚡️ Exhaustion Gapdown & Reversal
Gapdowns are More Brutal than Gapups & Hence Create Deeper HH Whipsaws while Falling/Reversing.
3) Contraction
Gap and Contraction
⚡️ Minor Bull Trap - Fake Short & holds the lows for EOD Rise.
⚡️Main BEAR Trap - Initiation of Rise with Momentum but Fades & Get in Contractions.
⚡️ Combo Of Multiple Bull Traps/Bear Traps throughout the Day to Weed out weak Hands.
Each And Every One Aspect of Market is Deep Enough to get Lost in the Complications of it. But, One should Know the Basics just to stay in sync with market.
I can talk about Hours with just One variation with Multiple Examples I've traded till Date in NIFTY BANKNIFTY and Stocks.
Take Above thread as an Initiative for Self study of Gaps.
Ocean of Market is so deep & 99% of the Retailers never even Scratch the Surface of it.
:)
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For more such learnings and clean charts.

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