Daily Candle Gap Pattern

The analysis includes 2 types of candle actions that create the gap. The gap resulted from the downward movement and the gap created by upward movement.


Downward action daily candle gap

The downward daily gap is considered only when the candle opens below the lowest value of the previous candle. During the trading day, the current candle must reach a greater value than the lowest value of the previous candle, thus closing the gap.

Upward action daily candle gap

In this case, the upward daily gap is considered only when the candle opens above the highest value of the previous candle. During the trading day, current candle must reach a lower value than the highest value of the previous candle, thus closing the gap.

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