Just pointing out tonga that your analysis of gaps doesn't include runaways. This is the gap you are pointing too. I am afraid you have generalised by thinking all gaps get filled. They don't!
Conclusion
There is an old saying that the market abhors a vacuum and all gaps will be filled. While this may have some merit for common and exhaustion gaps, holding positions waiting for breakout or runaway gaps to be filled can be devastating to your portfolio. Likewise, waiting to get on-board a trend by waiting for prices to fill a gap can cause you to miss the big move. Gaps are a significant technical development in price action and chart analysis, and should not be ignored. Japanese candlestick analysis is filled with patterns that rely on gaps to fulfill their objectives.
OEX Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
