chart on mnm, page-42

sorry l3x

not the best word, but i couldn't really think of another way of explaining it. i'll try and elaborate what i mean


if the general definition of "gap" is an empty space where no trading has taken place, then the majority of trading which has occured around that event is going to be within those parameters.

if you then come along and throw your own personal interpretation over the top of that general understanding, you are going to eliminate a whole lot of trades from your analysis.

the strength of the gap theory relies on the concept of market action at certain trigger prices. eliminate the trades and you eliminate the market forces which are behind the definitions.

in other words, if there is less action, the theory weakens.

i could say that a gap, in my books, requires the candles to be only of a certain colour. this would also weaken the theory, as i would probably be the only person using it to make a call.

again, apologies for the misunderstanding.