Geometric patterns are discovered by connecting high and low points of price movements. Chart patterns give the most reliable trading signals and can provide information about the future behaviour of instruments.
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Common gaps are sometimes referred to as a trading gap or an area gap. They usually develop during low trading volume periods. The common gap is usually uneventful, formed in consolidation or trendless phases. These gaps are filled by the market quickly. The trading volume does not change after the gap’s appearance.
Common Gap Example
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