morning gap

There are few key elements of the morning gap. It is important to understand these these building blocks first to know how to trade the morning gap.

What you have to remember, is that you have a very short time window to execute your trades and for that it is important that you have to be able to quickly process all the clues that are given to you.

Volume

Probably volume is the most important tool that you can have available to you.  Being a trader, it is essential for you to understand the significance of high or low volume, especially when it occurs at important support and resistance levels.

When high volume is attacking a support or resistance area and pushing through it, then this indicates that the sellers or buyers are in control and that in order to actually signal a continuation in trend for a larger period of time enough energy has been exerted.

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Tagged as: buyers, Characteristics of a Morning Gap, heavy interest in the stock, high levels of volatility, high volatility stock, how to trade the morning gap, morning gap, risk profile, Risk Tolerance, sellers, stock exchange, stock traading, support and resistance levels, volatility, Volume

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