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Gap in Trend When there is a gap after the Trending Candle then we move the trend-stop level from the opening price of the TC to the bottom of the gap if we are in an up-trend or the top side of the gap if we are in a down-trend. When the current TC forms a gap with the previous candle then we move the trend-stop level from the opening price of the TC to the bottom of the gap if we are in an up-trend or the top side of the gap if we are in a down-trend.
Let’s look at the same example. The TC at point A makes a gap with the previous candle. The trend-stop level moves from the opening price of the TC to the bottom of the gap marked by the line. |
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