If not, you're missing many high profit opportunities. Past battles between bulls and bears leave a scarred landscape of unique charting features. When trend finally turns back through old price, skilled traders use these powerful points to identify effective momentum and swing trades.
Gaps mark the most obvious element of a pattern landscape.
They also provide one of the most profitable setups in all of technical analysis. Continuation gaps rarely get taken out on the first try, except by another gap . Successful trade entry in the direction of support can often be executed as soon as price enters a gap on high volatility. Day traders use this tendency profitably since major reverse gaps rarely occur intraday. Past congestion breakdown identifies short sale entry points.