Traders have always benefited from massive jumps in asset prices, especially during volatile market conditions.
A popular way to enjoy such jumps is using gap trading strategies. Gaps are areas on a technical analysis chart where the price of an asset moves sharply up or down.
During gaps, there is little or no trading during the volatile periods. Because of this, the chart of the asset shows a gap in the normal price pattern. You can interpret the gaps and exploit them for profits.
In this post we go through why gaps occur and how you can use them to make profitable trades.
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