There are 5 basic ways to trade a Gap or any line. In this video, I discuss two ways to enter the market using a Gap. The Gap entry techniques by themselves are of little use, but if we make a few distinctions in market structure and the process of a swing cycle, they can become functional.
Swing cycles have a process that they go through. As long as we understand that process we can view Gaps in the light of where they happen in that process. I’m going to focus on these two Gap entry techniques in the lower portion of the reaction leg at the bottom pivot of a swing. The Gaps are what make up the pivot portion of the swing.
If you observe markets and swings you will often see this distinct pivot portion of a swing, it looks like a U at the bottom of a reaction leg.