IMUGENE CHART. TA only, page-33321

Thanks Slick
I think this is a debate that could go on forever, if you dig around a bit you can find different explanations with slightly different wording that can be interpreted differently...
In one of the examples you gave

If I read the section that you did not highlight, I interpret that as a price point that has not had any trades at all. So a close at 4.8c, no trading at 4.9c (being the gap) then trading above that with a low of 5c

Using that logic, I do not consider these as gaps. The price has not touched the previous close but there is no price that did not have any trades


In a more practical approach, I think the semantics of it are quite irrelevant, the application of the theory is what is important. Like so many things regarding TA, it is largely a psychological game. It's about trying to anticipate the market (other traders, shorters, bots etc)
I think the reason there is a gap here in the first place is a good example
I was watching for an entry here when it gapped up and applied my theory. To me, the gap was at 4.8 but closes at 4.9, I put my buy order in at 5c because the way I see it, only 1 share has to trade at 4.9 to close the gap so joining the back of the queue at 4.9 might miss the boat

In this instance it worked out well, perhaps other buyers had a similar thought which might be why 4.9 was never touched?

Anyway, thanks for your thoughts

Speaking of gaps... Are you watching the gap up on one of the other stocks we have in common? Not sure if you're still holding... Gotta love a live example haha