Hey h00ts, given how rediculously lazy anf0 is and how he has really just decided not to back up his argument at all apart from drawing on a chart or refering to a vague investopedia description, I've taken it on myself to provide his argument (god help me)
Essentially, what anf0is refering to is a full gap up/down (where the opening sp is higher/lower than the previous days high/low) or a partial gap up/down (where the opening sp is higher/lower than the previous days closing price, but within trading range of previous day.
Tradingsim.com refers to these gaps as morning gaps and suggests trades to be placed on the opening minute candle with a stop put in place.
The described ideal situation is a gap up over 4% on a company with fewer than 100m shares on offer and 10m (or 10%) shares traded on open. Essentially this is a strategy used for pretty intense day trading from the sounds of things
https://tradingsim.com/blog/day-trading-morning-gaps/
Anyway, these partial gap ups/down are said not to really provide any meaningful sign on the trend of a stock and merely present as a day trading opportunity. Given this is the case, I would say these types of gaps should not be utilised in viewing the longer term trading patterns or trends often assessed in TA and are just for day trading purposes
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Hey h00ts, given how rediculously lazy anf0 is and how he has...
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