What Is CME Gap?
What is CME Gap❓
Those brother's and sister's are confused in CME Gap Let me try to explain this in easy language.
For this we need to simply take it in understanding like this, that CME(Chicago Mercantile Exchange) is an exchange that offers trading facilities including Bitcoin's future contracts. Now we all know that these exchanges have certain times to trade in. They do not stay open 24/7. CME, weekly closes on every Friday and than reopens on Monday. So as you know that during the time when CME was closed, the worldwide trade of BTC didn't close on other exchanges like Binance and others as it is a 24/7 trading facility. Consequently, there is a gap created in between the closing price of Friday on CME and opening price of Monday on CME, which is widely referred to as CME gap.
For instance, When CME closed on Friday, BTC was being traded at $48000 and when CME reopened after weekend on Monday the price of BTC was $51000. Now, this price movement of $3000 was not recorded in CME charts, like there will be some missing candles from $48000 to $51000. These missing candles or unrecorded price movement is known as CME GAP. There is a general idea or a higher probability that this gap will get filled sooner or later and it does get filled more than 80% of the times. Now for that, BTC will have to retrace it's value to $48000 to fulfill the gap, that is why these gaps are considered important.
Hope I made it easy and simple.
EDIT*: The prices mentioned are for, example purpose. They are hypothetical and not a real case.
Those brother's and sister's are confused in CME Gap Let me try to explain this in easy language.
For this we need to simply take it in understanding like this, that CME(Chicago Mercantile Exchange) is an exchange that offers trading facilities including Bitcoin's future contracts. Now we all know that these exchanges have certain times to trade in. They do not stay open 24/7. CME, weekly closes on every Friday and than reopens on Monday. So as you know that during the time when CME was closed, the worldwide trade of BTC didn't close on other exchanges like Binance and others as it is a 24/7 trading facility. Consequently, there is a gap created in between the closing price of Friday on CME and opening price of Monday on CME, which is widely referred to as CME gap.
For instance, When CME closed on Friday, BTC was being traded at $48000 and when CME reopened after weekend on Monday the price of BTC was $51000. Now, this price movement of $3000 was not recorded in CME charts, like there will be some missing candles from $48000 to $51000. These missing candles or unrecorded price movement is known as CME GAP. There is a general idea or a higher probability that this gap will get filled sooner or later and it does get filled more than 80% of the times. Now for that, BTC will have to retrace it's value to $48000 to fulfill the gap, that is why these gaps are considered important.
Hope I made it easy and simple.
EDIT*: The prices mentioned are for, example purpose. They are hypothetical and not a real case.
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