Formation gap

Formation gap.

Witnesses to the Formation gap or window at the beginning of a new trend produces profitable opportunities.
Seeing the Formation gap created at the beginning of this trend shows a reversal of direction, buyers are involved with a great amount of zeal.
A common scenario is witnessing a prolonged downtrend. A Doji appears, indicating that a sale can be stopped.
To confirm that the downtrend has stopped, indicating the day of purchase is required.
This may be more pronounced if the next day a "Formation gap" is moving.

Many investors are worried about buying a stock that has emerged from near the previous day. A risk situation! However, investors Candlestick aware that this trend will change, with the signal as alert. A Formation gap that illustrate the power of buying a new upward trend will be strong. The enthusiasm shown by customers trying to get in stocks shows that the new trend should have a strong movement to it. Use the Formation gap as an indicator of strength.