Friday, August 2, 2013

Technical Analysis in Forex Global Market

When referring to Forex gap we most commonly understand the difference between the currency pair price determined the previous week's closing in contrast with the price of the starting week. When the lowest price on a trading day is higher than the highest price of the previous day UP GAP formulates. On the contrary, we deal with the DOWN GAP when the highest price of the day is lower than the lowest price of the previous day. Accordingly the UP GAP stands for market strength, while the down gap signals about the weakness of the market. When an important price gap is formed during the completion of an important price pattern then this is where the trader deals with the Breakaway gap which, as a matter of fact, results in an important price move.

The gap that usually happens in the mid-point of an important market trend is called a Runaway gap, which for this reason is called measuring gap. A price gap that comes forth at the end of an important trend alerts that the trend is ending

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