![]() Well, when a market “fills the gap”, it simply means that it fills the empty space which is the gap itself. What Does Fill the Gap Mean? How often do gaps get filled? As you probably can guess, a bullish gap is one where the market opens higher than the previous close, while a bearish gap is one where it opens lower. In other words, you could say that the price “jumped” a certain distance, meaning that it closed at one price, and then opened higher or lower, without touching the intervening levels.ĭepending on the direction of the gap, you usually refer to gaps as either bearish or bullish. However, most importantly, we’re going to look at some historical simulations to get a final and clear answer to if gaps tend to fill or not! What are Gaps? Do gaps always get filled?Ī gap could be regarded as a hole in the price chart, where no trading took place. If you want to get more inspiration for your own trading strategies, we highly recommend that you have a look at our edge membership! In this article, we’re going to look closer at what a gap is, and how it’s interpreted by most market players. However, the gap-fill rate varies depending on a lot of factors, including the market and timeframe traded, as well as how long time you give the market to fill the gap. The one which perhaps stands out the most, is that most gaps are filled. When it comes to gap trading, there are some assumptions that are made as well. Candlestick patterns, chart patterns, and various commonplace trading strategies that are given a certain meaning are perfect examples of that! ![]() In trading, you’ll find that many people make assumptions regarding a lot of things. Last Updated on 3 November, 2022 by Samuelsson
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