![]() ![]() Take note of the volume of stocks as high volume occurs in a breakaway gap, and low volume occurs in exhaustion gap. The continuation gap and exhaustion gap are very different, so the trader has to make sure of the gap he is going to follow. Once a stock starts to fill a gap, it will not stop as there will be little or no support or resistance in the market. Seasoned investors and traders can make a quick profit depending upon their perception of the market. If they fail, they can incur substantial losses. If the trader is risk-averse, then they should begin their trading after carefully analyzing the course of the stock market. The first couple of minutes remain highly volatile, where buyers and sellers try to match prices as per their perceptions of the trend. In India, the trading market opens after the pre-opening session on all weekdays, except on public holidays. Gap strategies in the Indian stock market This often happens due to innate technical analysis. There are cases where the traders will shadow the gaps in the opposite direction if the high or low point of the stock is fixed. Traders might also invest in highly liquid or non-saleable positions, like a currency that has low-liquidity during the beginning of a price trend, expecting a continued and favorable trend. Some traders will purchase when technical or fundamental reasons like the company's financial report support a gap on an opening day. There are many techniques to take advantage of the gaps in the stock market.
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