Category:BDG
Body Gap, less reliable than true gap (where there is no price overlap at all) but can still be important when context is right.
Be very careful using body gap, because misuse of it can lead to stupid trade, it is less reliable because it is a sign that limit order traders can make money. For e.g. in a bear trend, body gap indicates limit order bulls can make money, which is a sign that the selling pressure is not as strong as it can be. It is recommended to use body gap along with other setups, for e.g. 3 consecutive bear bars at EMA in below chart. Consider other factors, never rely on body gap alone.
