Chart Types: Continuous vs. Gap

[dlineinvestor]

How many of you use both or prefer only one of these types.
List pro's and con's

This could tie into why I think CFD providers only provide continuous data.

 

[pixel]

How many of you use both or prefer only one of these types.
List pro's and con's

This could tie into why I think CFD providers only provide continuous data.

I always pay attention to gaps; while I don't expect them to be closed immediately, especially when the sp moves strongly away from one, I look for them as potential target zones once a move has turned and appears to approach an old open gap again.

A few exceptions apply in cases of -

• stocks with a habit of leaving little gaps, e.g. RIO
• certain candle reversal patterns such as Morning or Evening Stars
• index charts

One big advantage (of including gaps as target zones) is that it saves time: I can set an alert - usually "this side" of a gap and know I don't have to keep a constant eye on it. I also set an alert "away" from the gap to catch the case where the sp does NOT return. I also find is useful to have old gaps carried forward over longer periods as they mark targets even after months or sometimes years.
The disadvantage: I may miss out on a trade when I wait too long for a gap to close - and it doesn't. But I'd rather miss out on the odd trade than find myself caught in one that's hard or costly to get out of.

 

[skc]

How many of you use both or prefer only one of these types.
List pro's and con's

This could tie into why I think CFD providers only provide continuous data.

What do you mean by this? For stocks there are gaps everywhere in CFD provider charts, even though some CFD providers do not include the open and close auction in their chart prints.

In futures there are gaps as well, usually weekend gaps. Some providers just quote a made up price with large spread during out of market hours... the chart plots the mid point so there are usually no gaps as long as the market is actively quoted.

 

[tech/a]

Futures or stocks.

If futures are you looking at continuous contracts or day session only?

You can still identify gaps by setting open > yesterdays close or <

Just read SKC

Man you wouldn't want to use T/A on CFD charts.

 

[dlineinvestor]

What do you mean by this? For stocks there are gaps everywhere in CFD provider charts, even though some CFD providers do not include the open and close auction in their chart prints.

In futures there are gaps as well, usually weekend gaps. Some providers just quote a made up price with large spread during out of market hours... the chart plots the mid point so there are usually no gaps as long as the market is actively quoted.

skc correct ! stocks do and always show the gaps regardless of data provider.
In my original "ask I should have implied "indices.
Indicie charts that are CFD provided don't show day to day gaps.

 

[dlineinvestor]

Futures or stocks.

If futures are you looking at continuous contracts or day session only?

You can still identify gaps by setting open > yesterdays close or <

Just read SKC

Man you wouldn't want to use T/A on CFD charts.

Unfortunately with IG or City Index there is no way to set open prices other than "Ask Bid or Mid.
However in advanced charts (IG) you can set hours to give you RTH only.
I do use AMP for index/futures trading

To narrow down my "asking point" .... is there any more advantage to using continuous charts over RTH charts.
RTH charts on indicies show gaps Continuous don't
My apologies for not making this more clear in the first post.