Well I've read a little about gaps and what they are, but can't wrap my head around why they should be filled. The basis of TA, as far as I understand, is recurring patterns that form due to human assessment of price action..
There is some inherent preference for us humans to expect or desire some particular trends or patterns over others, and this - visually - leads us to things like trading ranges, double tops, fib retraces etc. etc.
I kinda get that, but why the gap filling?! Do we like to have that "completeness" in the data..?
I am thinking that some of these TA trends/patterns/rules are overthought creations that have now become "expected" not because we like or somehow need them, but because they are a self-fulfilling prophecy, and - critically - actually provide some additional predictability to the TA community, without which there would be too much chaos and too much risk. In other words, defining all/some/most of these "patterns" is really just a means to attempt to force the sp to fit one/several "options" and therefore provide traders with less chaos to work with. The more the "rules" are shared and the more they are defined, the more it becomes a self-fulfilling prophecy... For example, if the sp bounces off a trading channel boundary, well it must be heading back towards the other one, so let's chase it there, and if it breaks through the trading channel boundary, then it must be shooting to the next resistance level / support level / fib level / etc., so let's chase it there....
I wonder how much this is really based on key human visual likes/preference and how much has become a creation of "rules" to make it easier to play the game...?
Just some random thoughts! Interesting stuff, and I'm in no way criticising TA, just pondering the ins and outs of how and why it functions!
And what about those gaps?
Keen to learn!
Cheers