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Charts & Indicators

How do you treat gap-ups and gap-downs in your process?

16 Sep 2026 · Edited from Martin’s stream; not a verbatim quotation.

I mainly treat gaps as support or resistance. If a stock is in a downtrend, below the EMAs and anchored VWAP (AVWAP), and a gap down forms, I look for a short on a bounce back into that gap. The gap can act as resistance, especially when the EMAs confirm that the chart is weak. Conversely, if a stock is above its EMAs and in an uptrend, a gap can become support during a pullback long.

Source: FOMC special | 16 Sep 2026