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Sequence of Gaps. A gap is defined as an unfilled space or interval. On a technical analysis chart, a gap represents an area where no trading takes place. On the Japanese candlestick chart, a window is interpreted as a gap.
Price action trading is about reading what the market is doing, so you can deploy the right trading strategy to reap the maximum benefits. In simple words, price action is a trading technique in which a trader reads the market and makes subjective trading decisions based on the price movements, rather than relying on technical indicators or other factors.
Systematic trading is most often employed after testing an investment strategy on historic data. This is known as backtesting (or hindcasting). Backtesting is most often performed for technical indicators combined with volatility but can be applied to most investment strategies (e.g. fundamental analysis).
The trading strategy is developed by the following methods: Automated trading; by programming or by visual development. Trading Plan Creation; by creating a detailed and defined set of rules that guide the trader into and through the trading process with entry and exit techniques clearly outlined and risk, reward parameters established from the outset.
This options trading strategy is the flipside of the long put, but here the trader sells a put — referred to as “going short” a put — and expects the stock price to be above the strike ...
Doji Star Consists of a black or white candlestick followed by a Doji that gaps above or below these. It is considered a reversal signal with confirmation during the next trading day. Tweezer Tops Consists of two or more candlesticks with matching tops. The candlesticks may or may not be consecutive and their sizes or colours can vary.
Rules; If the gap remains between an upper and a lower trigger band (resp. releverage and deleverage triggers), the strategy does not trade. It effectively reduces transaction costs, but the drawback is that whenever a trade event to reallocate the weights to the theoretical values happen, the prices have either shifted quite a bit high or low, resulting in the CPPI effectively buying (due to ...
It has compact trading activity that is separated from the subsequent move, which is in the opposite direction. It is an extremely good indicator of a reversal of a primary or intermediate trend. As soon as it appears, it indicates that an extreme change in sentiment has occurred. High volume is expected in that compact trading area.