Trading Gaps For High Profit Low Risk. Which gaps are suggesting continuation and which gaps are suggesting reversal.There are four types of gaps. The first is common gaps, this gap occurs within a sideways move and is of no importance to traders except intraday traders. Because it can provide intraday momentum to intraday traders.we will concentrate on the forth type of gap which is break away or break out gaps specifically because it is of greater importance for swing, position and even for intraday trading. If you can accurately locate a break out gap on any stock chart, it can earn you 10% to 50% profit in one trade only. And Even a 5-8% move in intraday trading.But how to distinguish a break out gap from other types of gap? These are the attributes of break out gap that we can use to identify them just at the time when they occur. The first, there will be some clear sideways pattern before the occurrence of this pattern. Price will be moving only horizontal without any sustained move in one direction. As there is sideways move there must be some clearly defined upper and lower boundary for price. This boundary lines can be parallel horizontal or conversing to each other making a triangle and in very rare case it can be diverging also. The upper line is resistance for rising price and lower line is support for declining prices. On the day of breakout from this pattern whatever it may be rectangle or triangle there will be considerable increase in the volume of trading. After the breakout of pattern there will be very good momentum in price in the direction of breakout at the opening and during the day for some days. For more details and examples chart watch video. Watch Gap For Intraday Stock Selection In the following video: https://www.youtube.com/watch?v=4JQ-eesg0W0 https://www.youtube.com/watch?v=RoUlucF6haM&t=1s Watch More On My Blog About Trading At: http://www.nascenttraders.com/ http://www.nascenttraders.com/easy-money-in-stock-market-trading/ http://www.nascenttraders.com/using-right-stop-loss/ http://www.nascenttraders.com/stock-market-trading-skills/ http://www.nascenttraders.com/profitable-trading-strategy/ http://www.nascenttraders.com/stock-market-index-trend-reversal-sp-500-nasdaq-ftse-nifty-50/ http://www.nascenttraders.com/magic-trend-indicator/ Watch All Videos On This Channel: https://www.youtube.com/channel/UC8g4zJZth5dwZgj7-uHgBXw/videos Contact Me On Social Media: http://www.nascenttraders.com https://www.facebook.com/rakesh.nascent https://twitter.com/nascenttraders https://plus.google.com/u/0/+RakeshSolanki1 Back Ground Music By: http:// www.freesfx.co.uk
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