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So how do we use gaps to our advantage and because they can be a really terrific trading opportunity
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for sure, and the key is to differentiate between what is a common gap and an uncommon gap.
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So let's look at those here briefly.
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A common gap, you know, something that can occur in a trending or non trending prices so it can occur
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in either one.
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And a common ground doesn't change the trend or start a new trend.
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It's common.
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Nothing's really going on.
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There's a gap.
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Yes, but it's not going to make a big difference.
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It's not going to change the trend or start a new trend.
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Those are the things we're really watching for.
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It's simply noise.
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Nothing's going on and might be a little flutter up or something like that because of some announcement
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or rumor or something happens.
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And a lot of times when you see these common gaps are not impactful.
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It occurs when the trading volume is low.
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Right.
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There's less people trading.
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So they're not like going on so good.
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We kind of verify if something might be a common or uncommon gap is look at those volume levels with
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fine levels are low.
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Very good chance is a common gap versus something that an uncommon gap we're going to talk about next,
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where it's very significant.
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A common gap would be something that's not significant.
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So if that volume is high and there's a gap, then you might have something that's real significant,
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which is the uncharming gap, and that could lead to a big price rise or fall in the next coming time
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periods like like days, the next coming days.
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So an uncommon gap is a significant event, the event that is occurring that may impact the price and
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trend and provide a great trading opportunity.
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So we're really looking for is uncommon gap.
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So there's four key ones to really look at and those are breakaway gaps, runaway gaps, zation gaps
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and island reversals.
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So the next lesson is we're going to go through each of those individually and show you how to watch
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them, how to recognize them, and then how to trade on them, you know, make some profits off of these
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types of gaps that can can occur.
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