#TradingTypes101
💡 How to use price gaps (Gaps) to your advantage in trading?
A price gap occurs when the market opens at a different price than the closing price of the previous candle — and it is considered a strong signal in some cases if you understand it well.
🔹 Types of gaps:
1. Breakaway Gap: Indicates a strong breakout and often precedes a new trend.
2. Runaway Gap: Appears in the middle of a trend and confirms its strength.
3. Exhaustion Gap: Appears near the end of a trend and may warn of a reversal.
✍️ Practical example:
An upward trend appeared on the four-hour timeframe, then an upward price gap appeared with high trading volume.
I analyzed it as a "Continuation Gap," and entered a buy position after confirming the next candle, with a stop loss below the gap, and achieved the target after the price reached the next resistance level.
📌 Next lesson:
How to detect price manipulation (Stop Hunt) and avoid it?
