In technical terms, there are two main categories of price gaps: up gaps and down gaps. An up gap materializes when the lowest price aftermarket closure is higher than the highest price from the preceding trading day. Typically interpreted as bullish signals in technical analysis, up gaps indicate positive market sentiment. On the other hand, a down gap occurs when the highest price aftermarket closure is lower than the lowest price from the previous trading day. Down gaps are generally perceived as bearish indications, signalling negative market sentiment.

We have recommended trading ideas to our readers based on the cup pattern setup in our Flash News Investment weekly journal. Our readers have consistently benefitted from this trading strategy. Here are some examples of the trading setup that our clients have traded on!  

The Nifty has completed its counter-trend rally to the 61.8 per cent retracement level and filled its opening downside gap of June 13 on expected lines.

The equity market took a breather last week as the global markets rallied.

The Nifty made a new low after March 8. With this, it also registered an 11-month low.

On Account of the intensified selling pressure in the broader market, the benchmark indices declined to near their previous swing low.

After a volatile week, Nifty formed an inside bar last week as it traded within the previous week’s range. It traded in the range of 489 points, formed a long upper shadow candle and resembled a shooting star candlestick pattern

Rising inflation concerns and the World Bank’s cuts about India’s GDP growth forecast dented the market sentiment while the disappointing earnings by heavyweights like Infosys and HDFC Bank added fuel to fire, which resulted into intensified profit booking.

Over the past fortnight, the relentless march of benchmark index Nifty 50 off its 200 DMA surpassed yet another barrier

The past fortnight has seen the markets, both global and domestic, under a massive, short squeeze which propelled the indexes higher with the markets recovering the bulk of losses that have been suffered in the recent past.

The past fortnight has been particularly cruel for the global equity markets in general with Indian equities being no exception.

Over the past 15 days, the Nifty has continued to trade with an underlying negative bias.