IOU Chart, page-1701

Just to correct you there Members End, in no way do I associate gaps as intraday, IMO any gaps on smaller time than a daily are a waste of time. We don’t rate them at all even when scalping fast trades.
And by the way, most traders rate daily gap ups extremely important as most fill soon after indicating a good entry point. In fact it’s the most talked about indicator amongst day traders just prior to open. As if a stock is gapping up or not. So it’s incorrect to say that traders go by the space between candles including wicks. Long holders might go by that where opens and closes aren’t important.

As I previously said gaps should only be considered as TA targets on a daily or weekly chart. And generally there are other more important TA indicators needing to be covered well before gap targets come into play.

So taking that all into account, how are gaps created?? And the answer is they are created by the closing of trading on one day and the opening of the next. If the prices are different there is a gap……pretty simple.
Where the SP has traded the day before closing is irrelevant, only the closing price is important.

Personally I hate gaps in charts, I like things neat and tidy but also know not to ever worry about runaway gaps like the few that exist low 20’s. At the time there was a strong reversal of trend bouncing off .20 and gap ups during that time are common. Leave them there, who cares, they will only become a technical target if there was a major retrace caused by a bad announcement or something. Let’s hope that’s not on the cards.