Gap

Video explaining the theory of gaps and the Emini futures contract.

Example of trading the gap in the Emini futures market.

Video showing a day trader profiting off a morning gap.

Example of a 30 minute gap strategy.  This strategy is for active traders that have longer view point on the markets.

Exhaustion Gap Definition

An exhaustion gap comes at the end of an impulsive move.  The exhaustion gap has an abnormal pickup in volume and then reverses sharply.  An exhaustion gap occurs after an earnings announcement or news release.  This final blow off brings enormous public attention and

Gap Definition

A gap is a break in price with no overlap. Gaps are common in the morning as there is a flood of orders as a result of new releases and earnings reports. Gaps get filled roughly 75% of the time.

Breakaway Gap Definition

A breakaway gap is a gap that has a strong gap with a surge in volume. While the volume on a breakaway gap is high, it is not so high that it produces a climactic top or bottom.