The last pattern diagram I will add is the gap scenario. These types of days can be difficult for many as it’s hard to decide what to reference. We’re trading so far away from our previous levels that it’s hard to gauge your risk on a trade.
Whenever this happens, the market is showing us that something significant has changed in the overnight session. Upon seeing a large gap, as I’ve mentioned in several posts is to simply wait for the market to show you it’s intentions. The thought here is the market is looking to adjust