Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
My view is that gaps are created only at the next day’s opening or if a market is temporarily shut down and reopens. I would think that the probability formula to calculate reaching any point on a chart is the same for a gap area or a filled area, (if there is an additional mathematical factor to consider specifically for a gap, I don’t know what it is). Of course, the closer the point to current levels the greater the probability that the market will reach it, gap or not. But it’s very possible that I’m missing something because many traders believe that gaps are valuable tools. Possibly that is sufficient reason to note them. Yes, mind the gap.