The long jump, known as a “window” in Japanese and a “gap” in English, refers to the fault line between the lowest and highest prices of the curve produced by rapid fluctuations.
Some say the “jump gap” will be filled sooner or later.
It’s not absolute.
It needs to be treated graphically differently: some jumps have technical significance, while others are very general, judging the strength of market trends and true or false breakthroughs from the location and size of jumps.
Short jump is a strong indicator of trend.
Patterns of short jumps :(a) common short jumps – predicting trends is not very helpful and can be ignored.
Because it occurs when there is very little volume or volatility (b) breakout short — usually after a big volume or important level is broken or at the start of a big new move.
When the exchange rate jumps sharply away from its original price, it indicates that a real breakthrough has begun.
Therefore, the bigger the jump, the more volatile the future.
(c) Persistent short jumps — occurring more than twice in a row, reflecting the steady development of the market with moderate volume.
In an up (or down) trend, these jumps will serve as support (resistance) areas for future market corrections.
Because THIS GROUP OF JUMPS USUALLY OCCURS IN THE MIDDLE OF THE TREND, WE CAN TRADE ON THE RULE THAT THE DIRECTION OF THE RISE (OR FALL) WILL DOUBLE IN THE MAGNITUDE OF THE FUTURE RISE (or fall).
(d) A consumptive short — also known as a decline short — usually occurs at the end of a trend. It is the return of a rapid rise (or fall), and hence a turning point in the market.
The jump short is usually after (a)(b) the jump short appears, and when it is filled, it is the day that the trend declines.
At this point, measures should be actively taken to avoid losses.
Markets shrugged off the Fed‘s doubling, the dollar fell from a three-week high and gold rallied more than $20.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
