In the London silver market, we can often see market jumps forming gaps. In fact, if we use them properly, these gaps can create profit opportunities for us in London silver investment. So let’s discuss what happens in London silver market. How do banks recognize these gaps and use these gaps to provide us with some high-probability trading opportunities?
In the London silver market, the so-called gap (Gap) refers to today's opening price being higher than yesterday's closing price. There is no price transaction in the middle, and a so-called gap is formed in the middle. Taking the daily chart as an example, the main reason for the formation of a gap is that the opening price of London silver is much higher than yesterday's closing price. The fact that the opening price can open higher means that the market has already determined the intention to pull up before the opening. Therefore, after the opening of the market, the first transaction will be opened directly at a higher price, because the market intention is very obvious, which is to prepare to enter the market to buy heavily and raise the price! Therefore, we see that the opening is very high, creating a large gap, which means that London bank conditions will have the opportunity to rise strongly.
According to the gap generated at different stages, it can be simply divided into three gap forms:
1. Breakthrough gap: It occurs when the London bank market rises. When the price consolidates for a period of time, it breaks through upward or downward, with a large amount of trading volume, and no cover. The larger the gap, the greater the volatility in the future.
2. Escape gap: Appears between the London silver trend market. A gap appears after the relay consolidation pattern, with a large amount of trading volume and no covering. Indicates that the trend will continue.
3. Exhaustion gap: Appears at the end of the London banking market and jumps short in an upward or downward trend, but is quickly covered.
In London silver trading, the first breakthrough gap is something we can take advantage of and can provide us with good trading opportunities. When a breakthrough gap occurs in the London Silver trend, it means that the market is in a strong breakthrough market, and we can conduct transactions sequentially at this time. Of course, more conservative investors can wait to enter when the risk of a correction is smaller.
The above is the use of gap theory in London silver investment, I hope it will be helpful to investors.