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Posted On: 10/10/2017 11:12:11 PM
Post# of 103888
As a general rule "most" gaps will fill but not all, there are "runaway gaps" and "breakaway gaps" that are never filled on some charts.
Gaps are technical events on a chart, the fill on the chart simply adds continuity and is often a self fulfilling prophetic event as the chart nears the gap area. Many traders will see the gap on the chart, fear it will fill and sell as a response, thus filling the gap. jmho
Markets often move on many psychological factors i.e, fear, greed; gaps DO NOT HAVE to fill but the psychology is such that they can not be ignored.
$SANP at .0029 had run 2800% (awesome move), most all technical signals were well within overbought territory. This does not mean that the chart won't move higher but one had to expect some profit taking and consolidation before the higher move.
Profit taking panic (fear of losing gains) ensued EOD on $SANP which accelerated the pullback.
Gaps and Gap Analysis
http://stockcharts.com/school/doku.php?id=cha...p_analysis
Gaps are technical events on a chart, the fill on the chart simply adds continuity and is often a self fulfilling prophetic event as the chart nears the gap area. Many traders will see the gap on the chart, fear it will fill and sell as a response, thus filling the gap. jmho
Markets often move on many psychological factors i.e, fear, greed; gaps DO NOT HAVE to fill but the psychology is such that they can not be ignored.
$SANP at .0029 had run 2800% (awesome move), most all technical signals were well within overbought territory. This does not mean that the chart won't move higher but one had to expect some profit taking and consolidation before the higher move.
Profit taking panic (fear of losing gains) ensued EOD on $SANP which accelerated the pullback.
Gaps and Gap Analysis
http://stockcharts.com/school/doku.php?id=cha...p_analysis
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