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Finding the gap

This lesson assumes that you understand your financial goals and are familiar with all the risks and opportunities online trading provides. You can schedule a free call with our expert trader that will help you find the best way to achieve your financial goals.

First, you identify what is known as an 'exhaustion' gap. To identify an exhaustion gap, look for the market to rise or fall for a minimum of three days in a row. It could rise for three, four or any number of days in a row – after which a gap can then occur.

Note that as a rule of thumb, you will find that the price does not rise or fall