GapArea Entry
Gap Area Entry Trading is a strategy that focuses on trading when price returns to fill or react at a price gap on the chart. Gaps represent imbalances in price caused by sudden shifts in supply and demand—often triggered by news, earnings, or weekend market open.
💰What Is a Price Gap?
A gap occurs when:
The current candle’s open is above or below the previous candle’s close, creating a visible space (“gap”) on the chart.
There are two types relevant to this strategy:
Up Gap (Bullish): Open > Previous High
Down Gap (Bearish): Open < Previous Low
💰 What Is a Gap Area?
The gap area is the price zone between the open and the close where the gap occurred. It’s considered an event area where institutional activity may have created an imbalance.
💰 Gap Area Entry Strategy (Buy or Sell)
1. Identify the Gap
Look for a visible gap on the chart (most visible on daily, 4H, or 1H).
Mark the start and end of the gap zone.
2. Wait for Price to Return
Price often revisits the gap area to “fill” it before continuing.
3. Look for Entry Confirmation
When price returns to the gap zone:
Look for a pin bar, engulfing candle, or inside bar.
Combine with volume spike or confluence (e.g., EMAs, support/resistance).
4. Enter and Manage Risk
Buy if price gaps down and returns to bullishly retest the gap.
Sell if price gaps up and returns to bearishly reject the gap.
Place stop-loss outside the gap zone.
Target 1:2 or next structure level.
💰📌 Pro Tips:
Not all gaps get filled quickly—some remain unfilled for weeks/months.
Works best with liquid markets (Forex, indices, stocks).
Combine with Fibonacci retracement or trend direction.
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💰🧠 Why It Works:
Gaps are often caused by news or institutional orders.
The gap fill is a rebalancing of order flow—retail enters late, institutions defend their positions.
Price revisiting the gap can act as a retest or rejection zone.
💰Example
Stock gaps up from $95 to $100.
Price later pulls back to $97 (within the gap).
A bullish pin bar forms → Enter long → Target $102.
💰 What Is a Gap Area?
The gap area is the price zone between the open and the close where the gap occurred. It’s considered an event area where institutional activity may have created an imbalance.
Entry With RSI
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A Pin Bar entry in trading refers to a setup based on a candlestick pattern that signals a potential reversal in price. The term “Pin Bar” is short for “Pinocchio Bar”, named for its long “nose” that lies about market direction — suggesting a false move in one direction before reversing.
🔹 Bullish Pin Bar (Buy Setup)
Context: Occurs at support or after a downtrend.
Pin Bar Shape: Long lower tail, small real body near the top.
Entry: Buy on break above the high of the pin bar.
Stop Loss: Below the low of the pin bar.
Take Profit: Near resistance, or use risk-reward (e.g., 2:1).
🔹 Bearish Pin Bar (Sell Setup)
Context: Occurs at resistance or after an uptrend.
Pin Bar Shape: Long upper tail, small real body near the bottom.
Entry: Sell on break below the low of the pin bar.
Stop Loss: Above the high of the pin bar.
Take Profit: Near support or via R:R ratio.
🔧 Tips for Effective Pin Bar Trading
Trade with trend for higher probability.
Use with support/resistance, Fibonacci, or moving averages.
Avoid trading pin bars in choppy or low-volume conditions.
Look for strong rejection candles with good context — not just any long wick.