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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.