GAP Trading Lesson - Traders Den PH Blog

Ang sarap magtrade! I ended my week with 103,000 pesos (1,788 USD) profit mula sa scalp trades this week.

Nakaupo ako sa swing trades na may 540,000 pesos profit.

Proper trading approach lang ang key!

Sunday ngayon kaya let me teach you something.

Let us talk about GAPS.

Introduction To Gaps

Gaps

A gap is a hole between prices. Kapag nagclose ang stock sa 10 pesos at kinabukasan nag open sa 11 pesos at di na bumaba pa doon ang price ay gap na agad yun. Yung 10.1 pesos up to 10.9 pesos ay tinalunan ng price kaya may gap.

Why Gaps Happen?

Gaps typically occur when a piece of news or an event causes a flood of buyers or sellers into the security. It results in the price opening significantly higher or lower than the previous day’s closing price.

Nasa structure din ng candlestick ang problema bakit nagkakaroon ng gap. Any difference sa closing price nung previous candle at opening price ng current candle will create a gap kahit walang catalyst.

What Are Gaps Filled?

“Uy Fill da gap!”

“Babalikan niyan ang GAP!”

“Gap Filled!”

Narinig mo na yan? May common belief ang mga traders na ang mga gaps sa prices ay binabalikan at nafifill.

Gap fills can occur for a variety of reasons. In many cases, gaps fill because the original gap was an overreaction to news. After earnings reports, gaps often fill as investors look past a good or bad-sounding headline and dig deeper into the guidance. Gaps can also fill for technical reasons.

Gap Trading

May apat na known gaps.

A common gap: It generally occurs in a sideways markets. It is likely to be filled because of the market’s mean-reversion dynamic.
A breakaway gap: It generally resembles a common gap but the gap occurs above a graphical resistance or below a graphical support. It signals acceleration in the new trend.
A runaway gap: It generally occurs within the trend but it confirms it more, therefore, it is a continuation pattern.
An exhaustion gap: It generally occurs at the end of a trend and close to a support or resistance level. It is a reversal pattern.

Bago tayo magpatuloy ay may maliit kami na gift sa inyo.

I hope maenjoy at magustuhan ninyo.

Kayo na bahala magpasa niyan sa iba.

Thank you!

Here: https://bit.ly/4cPbEr6

Gap Magic

To simplify GAPs at para na din hindi ka mahirapan maghanap ay go to tradingview.

Click indicators then scroll down and find “GAPS.”

Click mo sya at ganito ang lalabas.

It will automatically show you the GAPS.

Green ang box kapag GAP UP.

Red ang box kapag GAP DOWN.

Take a look at this chart.

Gap down ang price ni DMC. Gumawa ng red box para maipakita ang GAP Down sa price.

Take a look at this chart.

May GAP UP sa price ni BDO kaya pinakita ng Green Box ang GAP UP.

Fill The Gaps

Take a look at SPNEC chart. May GAP DOWN at GAP UP.

If you go sa settings ng GAP indicator ay may “close gap partially” ka na pwede maclick.

If you click that then papakita niya sayo ang mga gaps na nafill/naclosed.

Max number of gaps is how many gaps ang gusto mo makita. Kung 15 ay hahanapan ka ng 15 gaps mula sa current pabalik sa past.

Ang minimal deviation naman ay minimum size ng gap na hanap mo. Based yan sa average size ng candle.

So there you have it. I hope may nalearn kayo sa blog na ito.

Kahit hindi mo ginagamit ang gaps sa trade mo ay pwede mo siya isteady sa chart mo just for you to be informed ng mga gaps sa prices kasi yun naman papakita niya. At least informed ka ng mga gaps.

Stay tuned lang sa mga lessons dito sa mga blogs.

Never stop learning!

Mas pinainit namin ang Summer dahil sa mga bagong courses.