What is the meaning of market gap in the context of cryptocurrency?

1 answers

• Dec 16, 2021 · 3 years ago
  Market gap, also known as price gap, is a term used in cryptocurrency trading to describe the difference between the closing price of a cryptocurrency and the opening price of the next trading session. It represents a break or discontinuity in the price chart, indicating a significant change in market sentiment or trading activity. Market gaps can occur due to various reasons, such as news announcements, market manipulation, or sudden shifts in investor sentiment. Traders often pay close attention to market gaps as they can provide valuable insights into potential price movements. Some traders may choose to take advantage of market gaps by placing trades based on the direction of the gap, while others may use them as a signal to enter or exit positions. However, it's important to note that trading based on market gaps carries risks and should be done with caution.
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