Gaps
Gaps are regular occurrences in futures market. Gaps occur due to the overnight change in sentiment of the
participants. Being technical traders we are not bothered about the "why" but concerned about "What".
Every gap is unique and require different treatment depending upon the situation. Still general guidelines can be
formulated to deal with gaps.
There are two types of gaps depending upon the location of the gap open. Inside Gaps and Outside gaps.Inside
Gaps are gaps happening inside prior days range and do not need any special treatment. Let the market trade
and interact with a Decision Point .We can trade the price action around DP as usual.
014.1 ▪️Gaps