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I sometimes get confused with gaps and overlap and contemplating what type of MMs to use. Which gaps are closed and which not.
If 2 and 3 are closed gaps can a trader use 1 and 3? Real time i can't make up mind sometimes and second guess myself. I would argue 2 closed 1 and can't be used.
Al says a gap can be any space between price and any prior S&R, and i think 1 and 3 is valid. Am i understanding gaps correctly or am i missing something?
Thank you carpet for such an effort to respond to my question. I appreciate it. I would like to ask you more about body gaps and their different closures between HTF and STF. A body gap on my trading TF is still open and sometimes i've noticed that on a STF the body gaps are closed. Should i be aware of that fact when trading? Should i use a HTF gap as MM? Are closed body gaps on a STF MGs on a HTF? Also i've noticed 20 ema gap bar setup is not as valid on a TF smaller than the 5min. Do traders care about the 20 gap bar setup on STFs?
5min body gap open
2min body gap closed
Thanks in advance!
