Trading Gaps For High Profit Low Risk Break out Trade Set up Gaps As Continuation & Reversal Pattern

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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

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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/

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Comments

Singh Gajendra says:

thanks sir, very smart and intelligent work ,, i have sent mail regarding your previous videos , please reply

Singh Gajendra says:

thanks sir, very smart and intelligent work ,, i have sent mail regarding your previous videos , please reply

vidya chauhan says:

sir, which timeframe it is work?

Vijay Raj says:

Rakesh sir, Again you have done the excellent work to teach all intrested trading peoples in simple language the main art of breakout gap trading ,it really helpful for me and others traders, I respect you sir, Please do the needful ,I need an afl which can find the pattern of consolidation in symmetrical ,or other patten with breakout/breakdown gap open price (above or below the Resistance/Support line with high volumes, so that it easy to scan few stocks everyday and morning breakout gap trading gives too much good rewards risk ratio fill.thanks a lot Rakeshji.u r doing simply great .happy to see yours other educational videos too,

Pat Hooser says:

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ureskhan@gmail.com khan says:

this is intraday or positional

Nascent S says:

Thanks you very much.

Chandrika Solanki says:

Good trading set up

rakeshldce4 says:

Nice Understanding about break out gaps.

Rakesh Solanki says:

Now you have tools making profit with break out gap with this video. What you say ? What is your suggestion? What you want in my next video please share in comment I will choose my next topic from comments here. Please Please Share In Social Media, facebook, Google+, Whats Up, twitter and whatever you like. Everyone will be adding to break out gap which will make it more powerful.

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