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Saturday, July 22, 2017

Gap Analysis

Gap Analysis

The important concept to take note:-

Experience traders buy after a wave of selling has occurred.

They sell after a wave of buying has occurred.

In-experience traders do the exact opposite! 

If a stock gaps up after a wave of buying has already occurred, these could be investor/in-experience trader buying the stock - it might be an opportunity to short.


If a stock gaps down after a wave of selling has already occurred, these could be investor/in-experience trader selling the stock - it might be an opportunity to go long.


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