chart..., page-25

IMO the 'gap theory' is total rubbish, but unfortunately if enough lemmings believe in rubbish it can occasionally become a self fulfilling prophesy.

There is a rational reason why most gaps 'appear' to get filled and it has nothing to do with their existence. The fact that a gap gets filled is an 'effect' and not a 'cause' of trading patterns. Better to look at 'support' and 'resistance' and then it becomes easy to see why gaps 'appear' to get filled.
That's right, stock prices tend to oscillate between them and if there is a good old gap in the way it is likely to get mown down, just as the ticks immediately above and below will. Nobody gets excited about 'gap+1' and 'gap-1' and 'gap+2' and 'gap-2' and etc, etc all the way between the current trading barriers being filled, but guess, what they quite likely will. So the filling of ''gap + or - n' is just as likely as the filling of 'gap'.

Until somebody can convince me otherwise, that's my theory and I am ticking to it.