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Post by otherottawaguy on Apr 22, 2014 13:08:34 GMT -5
I see many references to filling of gaps in the numerous messsage boards (MNKD & EXEL). Can someone tell me are these just "guesses" or is there some sort of chart that one can look at that has some sort of methodolgy driving it.
Just looking for general information on the subject (or a link) if anyone has the time to spare.
Enjoy the day,
OOG
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Post by alcc on Apr 22, 2014 14:11:11 GMT -5
I do not subscribe to TA. I see it as mumble-jumble. And even if there is some empirical support for it, it has no impact on my investment decisions. That said, seems to me all gap have been filled.
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Post by monkeymann on Apr 22, 2014 14:51:28 GMT -5
Hey Guy a gap on a chart refers to a spot on a chart where there is no overhead resistance till it reaches a previous share price. on our short term chart if it closed at the high of the day it would have a free ride up to 7. savvy
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Post by otherottawaguy on Apr 22, 2014 15:19:46 GMT -5
Guess my question comes in the form of two explicit question then.
Where are the GAPs upwards and downwards from here?
How are you ascertaining these values?
OOG
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Post by babaoriley on Apr 22, 2014 15:40:19 GMT -5
I guess you could go to the historical prices on Yahoo and figure it out. A gap occurs, for example, when a stock opens at higher than it closed the day before, but also when it opens lower than it closed the day before. Often associated with news, good or bad. The filling the gap thing has become so important to traders that it has a bit of the self-fulfilling prophecy thing going on. Usually, people don't get too exercised about a small gap, but one where a stock closes at $10 and next morning opens at $11 gets TA guys very excited.
I'm sure Investcopedia or whatever it's called would do a fine job in describing it, and tell you the theory behind it. I've never bought into it, myself, but again, if enough traders believe it...
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