Traders Glossary

Gap

Definition

Where the opening bar of a price chart opens and stays beyond (lower or higher) than the spread of the previous bar. Gaps can be lower or higher.

Related Terms

Blow off Top

A large rise in price followed by a quick drop. Often accompanied with high volume. Usually a technical indicator for the end of a bullish trend.

Divergence

Where 2 or more indicators move in different directions indicating different outcomes.

Fibonacci Retracement

Where prices on a chart move off their latest tops or bottoms in swings of 38%, 50% or 62% from their previous bottoms or tops before resuming their original trend direction. 50% is the most common and easiest to spot.

Traders Glossary

Gap

Definition

Related Terms

Blow off Top

Divergence

Fibonacci Retracement

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