Category:GPS

When we are evaluating market strength, we often look at GPS, i.e. 3 important things: Gaps, Pullbacks, and Size of bars. Below are signs:

• More gaps or body gaps, rather than less gaps or no gaps.
• Bigger gaps rather than smaller gaps.
• Size of bars, especially the relative size. Just because there are big CCBLB doesn't mean it is strongly bullish, we also need to look at the size of bear bars, if there are big CCBRB right after the CCBLB, erasing bull's damage every time bulls are trying for BO, the market is telling us that it is not that bullish.