What do these Price Action Gaps mean? | Forex Factory

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What do these Price Action Gaps mean?

  • #1
  • First Post: Apr 1, 2013 3:26am Apr 1, 2013 3:26am
Hi,

Could anyone explain what these charts mean? Do these gaps the tighter they are the strong the up/down move is. The more space there is with a weak up move = reversal is high probable?
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  • #2
  • Apr 1, 2013 4:23am Apr 1, 2013 4:23am
Quoting Pipanator
Hi, Could anyone explain what these charts mean? Do these gaps the tighter they are the strong the up/down move is. The more space there is with a weak up move = reversal is high probable? {image}
It means that there wasn't any supply or demand at that price level, so price moved elsewhere to find liquidity. When you can't find a seller at a higher price, all the market can do is move lower until it finds a willing supply of buyers, at which point price starts to move horizontally until another imbalance occurs.
  • #3
  • Apr 1, 2013 5:54am Apr 1, 2013 5:54am
.

I see only 2 gaps in the chart and they seem to be weekend gaps.
They do not mean anything nor indicate anything for future quotes.
It is the normal price difference that can occur when a Broker is closed and do not quote.


J.
  • #4
  • Apr 1, 2013 12:25pm Apr 1, 2013 12:25pm
Quoting jeuro
. I see only 2 gaps in the chart and they seem to be weekend gaps. They do not mean anything nor indicate anything for future quotes. It is the normal price difference that can occur when a Broker is closed and do not quote. J.
I understand that, however what is the relationship between that leg of a move and the previous leg of a move? I see the first leg usually on the GU and wide with space and the 2nd up leg with no space or a little and price shoots up with volatility. Linda Rashkee said I remember the bigger the space the more it goes up/down the lesser the space the harder it is for PA to go up n down.
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  • #5
  • Apr 1, 2013 1:40pm Apr 1, 2013 1:40pm
this should help....

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  • #6
  • Apr 1, 2013 1:41pm Apr 1, 2013 1:41pm
Quoting Pipanator
I understand that, however what is the relationship between that leg of a move and the previous leg of a move? I see the first leg usually on the GU and wide with space and the 2nd up leg with no space or a little and price shoots up with volatility. Linda Rashkee said I remember the bigger the space the more it goes up/down the lesser the space the harder it is for PA to go up n down.
Did I misunderstand your question?
  • #7
  • Apr 3, 2013 2:28am Apr 3, 2013 2:28am
I'm confused.
The arrows on your charts are not pointing at any gaps ???
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  • #8
  • Apr 3, 2013 2:33am Apr 3, 2013 2:33am
Quoting Gumrai
I'm confused. The arrows on your charts are not pointing at any gaps ???
Ahh, I think that maybe you are talking about the time between price thrusts on the chart?
Usually that will mean that the market is more volatile when the time gap is small and that can also mean that the market is more erratic.
Larger time gaps between highs or lows indicate a steadier market that is often easier to trade as there are fewer price spikes that take out your SL
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  • #9
  • Apr 6, 2013 6:21am Apr 6, 2013 6:21am
looks ok to me. This can happen. The big gap may be due to dull performance of the currency for a reasonable time period. Thats should be fine.
  • #10
  • Apr 25, 2013 7:08pm Apr 25, 2013 7:08pm
Quoting Gumrai
{quote} Ahh, I think that maybe you are talking about the time between price thrusts on the chart? Usually that will mean that the market is more volatile when the time gap is small and that can also mean that the market is more erratic. Larger time gaps between highs or lows indicate a steadier market that is often easier to trade as there are fewer price spikes that take out your SL
Interesting.. so what I usually see if 1 leg/wave for a up/down move slow and expanding and another 1 leg/wave contracting fast erratic. Does symmetry play a part on previous price action moves?
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  • #11
  • Apr 26, 2013 1:07am Apr 26, 2013 1:07am
If you want to investigate something interesting, I would look at places where price fell (or rose) sharply over the course of one or two bars.

When price revisits those areas, it often moves sharply again in the opposite direction. I don't have images to detail this to you. But you should be able to understand what I'm saying.
  • #12
  • Apr 26, 2013 6:18am Apr 26, 2013 6:18am
All the replies I have had are quite vague tbh. James 16 did mention once that the wider the space the more price action can easily flow up/down towards the next major resistance level. However, it seems if we have a big technical move it will take a fundamental move to outdo it thats the way I see it like yesterday on the UK GDP figures on the GU.
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  • #13
  • Apr 26, 2013 6:39am Apr 26, 2013 6:39am
Quoting Pipanator
All the replies I have had are quite vague tbh. James 16 did mention once that the wider the space the more price action can easily flow up/down towards the next major resistance level. However, it seems if we have a big technical move it will take a fundamental move to outdo it thats the way I see it like yesterday on the UK GDP figures on the GU.
If you ask a vague question, then it is only fair to expect vague answers
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  • #14
  • Last Post: Apr 27, 2013 10:58am Apr 27, 2013 10:58am
Quoting Gumrai
{quote} If you ask a vague question, then it is only fair to expect vague answers
That's a good one. Pipanator has created 148 threads to ask 148 vague questions and it's interesting to see people time and again respond to his new threads.
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