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Definition of 'Gap' A gap is a break on a price chart where no trading happened. This indicates a sharp move up or down if it happens while the market is open. If this happens overnight when the market is closed then it is the result of other market price changes that influence this market. The most common definition for a gap is the area between the close of one price bar (or candlestick) and the open of the subsequent one. However, some traders refer to gaps as the area between the previous session's high or low and the subsequent session's open price. On this site we use the term extreme gap for this type of gap. Gap in EURCHF seen reach 70 pips In the stock market gaps will happen when an unexpected earnings announcement is made after the market closes. The opening price will reflect the new (unexpected) information and cause the stock to gap-up or gap-down. Even though some markets trade almost continuously (such as the E-mini S&P500 shown in the ch...

Definition of 'Naked Point of Control (NPOC)' Naked POC is a Market Profile term. POC - Point of Control - is the price at which most trade occurred in a given trading session. A Naked POC is is a POC from a previous day that price has not returned to on any of the following days. Sooner or later NPOCs are tested much like "Gaps" are sooner or later filled. NPOCs act very much like magnets drawing price to them. That is why most days the POC of the previous day is visited. A Naked Point of Control is the same as a Virgin Point of Control (VPOC).

Definition of 'Virgin Point of Control (VPOC)' The Virgin Point of Control (VPOC) is a Point of Control (POC) that has not had a trade at that price since the day that that POC was formed. Say a POC is formed at a price of 1120.00 on Monday. On Tuesday the market trades above this price all day and forms a POC at 1145.00. On Wednesday the market trades above 1145.00 all day and forms a POC at 1165.00. On Thursday the market trades in the 1150.00 to 1170.00 range. So the situation on Thursday is that the POC's that were formed on Monday and Tuesday are VPOC's because their prices have not been touched since they were formed. However, the POC created on Wednesday is NOT a VPOC because the market has traded at that price since it was formed. The Virgin Point of Control is sometimes referred to as the Naked Point of Control (NPOC).

Definition of 'Time Price Opportunity TPO' A TPO is a Time Price Opportunity. This is marked as a single letter in a Market Profile. Instead of using bars or candles with an Open, High, Low, and Close price, each "bar" in a Market Profile is represented by putting a letter against the price that the market traded at during that time interval - usually 30 minutes per interval or "bracket" as it is called in Market Profile terminology. Each of these letters is know as a Time Price Opportunity or TPO for short.

Definition of 'Point of Control POC' The POC is the Point of Control. This is a Market Profile concept. It is the price at which most TPO's occur in the Market Profile. In our illustration the POC is at 1283.00 which is the most number of TPO's. 1285.00 M 1284.75 HM 1284.50 DEGHM 1284.25 DEGHM 1284.00 DEGHM 1283.75 DEFGHIMN 1283.50 DEFGHIMN 1283.25 DEFGHIMN 1283.00 DEFGHIJKMN 1282.75 DFGHIJKMN 1282.50 DFGJKLMN 1282.25 DJKLMN 1282.00 DJKLMN 1281.75 DJKLMN 1281.50 DLMN 1281.25 DLMN 1281.00 LMN 1280.75 LMN 1280.50 MN See also Virgin Point of Control (VPOC).

Definition of 'Resistance Level R4' R4 is the fourth resistance level. It is the highest level of 9 points that are calculated as part of the Pivot Points calculations that traders use to determine where the market might reverse direction. The resistance levels, support levels and pivot point are arranged as follows from highest to lowest. (In some cases the Pivot Point may not be in between the R1 and S1 level. This will happen when the support and resistance levels are not based off the pivot point.) Resistance Level R4 Resistance Level R3 Resistance Level R2 Resistance Level R1 Pivot Point PP Support Level S1 Support Level S2 Support Level S3