chart on mnm, page-43

I understand what you mean, thanks.

It's why I pointed out you can apply different weightings to different things.

12c is an obvious upside gap, 14.5c is a "technical" gap IMO, but I apply less weight to it because not everyone would interpret it that way.

I like to take into consideration how other people might interpret something, rather than just assume that what I interpret is the only possible correct scenario. I find it delivers more opportunities. That's just my opinion.

It's like major and minor support/resistance lines. Some have more significance than others. Some draw them in different spots.


"A gap is an area on a price chart in which there were no trades. Normally this occurs between the close of the market on one day and the next day's open."

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:gaps_and_gap_analysi

"A gap on a daily chart happens when the stock closes at one price but opens the following day at a different price."

http://www.swing-trade-stocks.com/gaps.html


Similarly,

"In an upward trend, a gap is produced when the highest price of one day is lower than the lowest price of the following day."

http://en.wikipedia.org/wiki/Gap_%28chart_pattern%29


"Gaps occur when the lowest price traded is above the high of the previous day or, conversely, when the highest price traded is below the previous day's low."

http://www.incrediblecharts.com/technical/gaps.php


Different places, different intepretations.


Each to their own.