chartists?, page-82

hey Jimbo,

yes it is an inside gap and I have every expectation that gap will be filled. Good question on dual listings, also a number of miners heavily reliant on o/n futures fluctuations. Having a time zone that largely sits opposite the rest of the world means we have certain stocks that are more likely to gap aggressively.

Things like RIO, NCM, BHP etc all have extremely high gap rates, yet their fill rates don't fluctuate from the rest of the market. What it does do though is reduce their predictability. I would always favour a gap on say NAB as a workable event before I would favour a gap on BHP. That's where other forms of analysis will play a big part in assessing a situation.

The other issue with stocks with high gap rates has nothing to do with fill rates but relates to how a gap behaves within a certain structure. I mentioned a thing called an island reversal somewhere, there are also things such as island clusters which appear within established trends. These can be extremely profitable gap events. Looking at an island reversal, the same island high in NAB would have a much higher probability of confirming a major turn than the exact same bar formation would on BHP.

Cheers
ww1