Monday, August 18, 2014

How to trade Break-Away Gap

How to trade break away gap after accumulation

In this post I would try to cover One way to trade the "Gap" In currencies. And this is the point which I have never covered in my previous blog posts But I never sight any such activity.

SO, When I was today after opening I saw correctional bottom and price reverses away with break away Gap and One important thing it done was test the broken level with the same candle and price never stops after that.

There are lot of other ways to trade "GAPS", But there has to be true logic behind the price action, which can guide you through the previous day activity, which in this case was neutral after strong selling. One more logic was that previous swing makes continuous higher highs and price bounce of the demand zone was good enough in this case and "Break-Away GAP" fulfill the rest of the requirements in this case. Most of the traders look and wait for the gap to be filled but not in such case where price went further away from GAP.

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