Ann: Quarterly Activities Report, page-35

Natural volatility in stocks sees most gaps get filled. The problem is that the price can often move well beyond the gap and waiting for a gap to fill might leave a trader missing out on big upside.
Check the chart below of VUL from January 2021. There are two gaps from January 2021 that still haven't been filled two years on. Anyone taking profit on the decline in late January and then waiting for the gaps to close would have missed out on getting back in to profit from a big rally from just above $5 to $16.
There is no magical reason for a gap to fill. I prefer taking profits when there is a more meaningful reason to do so, not because a gap was left. Gaps can indicate underlying strength. Do investors sell MNB now, or traders wait to buy, when there are so many significant announcements that could drop at any time, just because a gap was left in a strong uptrend? The gap might close but it might go to 16, 20 or 30c first. Or you might not even see it close two years later.



Here is another example with LKE. I zoomed in on the chart and the zoomed in chart doesn't show that the price kept going up to over $2.60. Pretty hard luck for anyone waiting for the gap to fill at 52c. Close, but no banana - or as Maxwell Smart would say, missed it by that much!