Unlock Your Market Wizardry: Conquer the 2025 Chartered Market Technician (CMT) Test!

Question: 1 / 400

In Japanese candlestick charting, what is a gap referred to as?

Breakout

Window

In Japanese candlestick charting, a gap is referred to as a "window." This term captures the visual aspect of the gap on the chart, where the price range of the candlesticks does not overlap. When a gap appears between two candlesticks, it signifies a strong shift in market sentiment, indicating that buyers or sellers have stepped in, creating a significant price movement. This is essential for traders as it can signal potential trading opportunities or trend continuations.

Understanding gaps or windows is crucial for interpreting market action; they often serve as notable support or resistance levels. Traders pay close attention to these gaps because they can indicate upcoming volatility and may help in forecasting future price movements based on historical behavior around such gaps.

Get further explanation with Examzify DeepDiveBeta

Shadow

Doji

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy