What Is CME GAP?
⛔ #CMEGap typically refers to a price gap that occurs on CME (Chicago Mercantile Exchange) futures contracts, especially in $BTC
and other commodities. Since the CME is closed on weekends, if Bitcoin or another asset trades on other exchanges during this time, a price difference (gap) can form between Friday's closing price and Monday's opening price.
⛔Key Points About CME Gaps:
The CME closes on Friday and reopens on Sunday evening or Monday morning.
If #BITCOIN moves significantly over the weekend, the CME's opening price may be different from its Friday close, creating a gap in the chart.
⛔Gap-Filling Theory👇
*Many traders believe that CME gaps tend to "fill"—meaning the price often retraces to cover the gap before continuing in its original direction.
*However, not all gaps are filled, and some may take weeks or months to close.
⛔Types of Gaps:
*Common Gaps: Small gaps that get filled quickly.
*Breakaway Gaps: Indicate the start of a new trend.
*Runaway (Continuation) Gaps: Occur in the middle of a trend, showing strong momentum.
*Exhaustion Gaps: Appear at the end of a trend and may signal reversal.
⛔Why CME Gaps Matter in Crypto Trading
*Many traders use CME gaps as support/resistance levels to predict potential price movements.
⛔Large gaps often attract attention, as traders expect the price to return to fill them.