FMG 1.38% $21.37 fortescue ltd

Gap theory and believing "gaps always get filled" is up there...

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    Gap theory and believing "gaps always get filled" is up there with healing crystals and homoeopathy, but since this is the TA thread I'll post a pattern with actual scientific evidence:

    https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2850057

    "We find strong evidence in favour of abnormal price movements after price gaps. We observe that during a gap day prices tend to change in the direction of the gap... contrary to the myth that price gaps tend to get filled."

    So there is evidence that after a gap up, the price will continue up in the short term - which is pretty obvious anyway. There is zero evidence for gaps having an effect on the share price weeks/months/years after the fact
 
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