Filling the gap
- Thread starter craigj
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It doesn't have to do anything, and it quite often doesn't get filled. In fact I'd go as far to say (at least with the types of stocks I follow) they are rarely filled. In my experience, if a spec stock gaps up strongly on a news announcement, it usually runs up very strongly, and rarely returns to the gap.
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Comsec wont let people gap it up on many trades.. ie if only offer is 20% higher than current buyer they wont do the trade ... see some examples in BMY..
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Can you please elaborate?
Often heard, but little understood, by me anyway.
What analysis do you use to indicate that the gap is filled?
Etc.
Cheers.
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Just kidding colleagues. My stocks aren't doing anything interesting today so I flicked a paper pellet in class.
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tech/a
No Ordinary Duck
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It’s about the type of gap
Break away gaps are rarely filled as are continuation gaps Partly filled does happen
Exhaustion gaps are often filled or partly filled
Break away gaps are rarely filled as are continuation gaps Partly filled does happen
Exhaustion gaps are often filled or partly filled
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After seeing AEV do this,
my mind wandered back to filling the gap situations. I'm guessing that you would classify this as a break away gap then @tech/a
My thoughts now run in general onto how long it takes for gaps to get filled.
I would think that the more time after a break away gap up, the less likely to be filled. Will have to consider more on the timeframe scenarios. And then there's gap downs...??
my mind wandered back to filling the gap situations. I'm guessing that you would classify this as a break away gap then @tech/a
My thoughts now run in general onto how long it takes for gaps to get filled.
I would think that the more time after a break away gap up, the less likely to be filled. Will have to consider more on the timeframe scenarios. And then there's gap downs...??
tech/a
No Ordinary Duck
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Yes I would see it as a breakaway gap.
Some other positives are that it was on volume and the very next bar was on less volume but didn't retrace into the gap.
On the negative side, it hasn't traded above short-term resistance despite the large increase in volume indicating there is still
supply around at these levels. It's doing its darndest to exhaust the supply. Once achieved looks good.
