Greetings, thanks for the daily analysis. You often talk about the true gap. What would be your definition of that, does it have to be a certain number of points to consider it a true gap. Thank you
A true gap occurs when the RTH session opens completely outside of the previous day’s RTH range, either above the high or below the low. A true gap up is considered filled if the market reaches the previous day's high, whereas a true gap down is considered filled if the market reaches the previous day's low. The main takeaway is that when the market opens with a true gap, in either direction, it signals a change in tone relative to the previous session. It's our job to monitor whether that change will be accepted or rejected.
Thank you! Nailed 5012!
Greetings, thanks for the daily analysis. You often talk about the true gap. What would be your definition of that, does it have to be a certain number of points to consider it a true gap. Thank you
A true gap occurs when the RTH session opens completely outside of the previous day’s RTH range, either above the high or below the low. A true gap up is considered filled if the market reaches the previous day's high, whereas a true gap down is considered filled if the market reaches the previous day's low. The main takeaway is that when the market opens with a true gap, in either direction, it signals a change in tone relative to the previous session. It's our job to monitor whether that change will be accepted or rejected.