LACUNAS

LACUNAS

A gap on a price chart marks an area where no trading activity occurred at a certain price level. O resultado é um espaço vazio between the closing price of one period (or candlestick) and the opening price of the next period. 

 

A gap represents a discontinuity in price movement. 

Let’s look at why gaps occur, what types of gaps exist, and how to use them to your advantage: 

 

Por que razão ocorrem lacunas?

1.     Due to market closure and reopening:

In forex, gaps often appear over weekends when the market is closed, and when it reopens (especially if a significant news emerges during the weekend). 

2.     As a result of an important or unexpected news:

During active trading days, the market may experience a gap if the expected value of an asset suddenly changes due to a breaking news event. Such news triggers a shift in how much people are willing to pay for the asset resulting in an imbalance between supply and demand in forex, or even slippage (positive or negative). 

 

How to profit from gaps?

1.     You can use it as a market sentiment indicator:

The size and direction of a gap often indicate market sentiment. 

-         Large gap up: Means strong buying pressure and bullish sentiment. 

-         Gap down: It signifies fear, selling pressure, and bearish sentiment. 

 

2.     It can help you anticipate a new trend or potential trend changes:

Analysing the type of gap and its context can guide you to identify potential price movements. 

-         Breakaway gaps: may signal the beginning of a new trend. 

-         Exhaustion gaps: may indicate the end of the current trend. 

 

3.     Gaps can also be used to identify support and resistance levels:

A gap down that later recovers may act as future support. A gap up that doesn’t get filled quickly may create resistance. 

 

Types of Gaps

1.     Liquidity (news) gap:

The most common type of gap in today’s markets. It occurs due to a sudden lack of liquidity caused by news announcements or fundamental events. 

 

2.     Weekend gaps:

These gaps occur over weekends due to events, news, or pending orders that get executed when the market reopens.  The difference between Friday’s closing price and Monday’s opening price creates a gap on the chart. 

 

3.     Common gaps:

They appear within a trading range and are less significant. 

-         They do not indicate major shifts in market sentiment or asset direction. 

-         They are often result from minor news or price fluctuations and tend to fill quickly.