Thanks for taking the time to respond - Yes I am familiar with...

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h00ts

46,396 Posts.

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20/03/18

09:23

Post #: 31875928
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Originally posted by Amorga ↑

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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Thanks for taking the time to respond - Yes I am familiar with that line of interpretation but it doesn't work for me -

If you agree that a gap is a window on a chart a window is a clear view an empty space if you will - so its easy to look a chart to see where the empty spaces ( windows ) are / were located - Anfos gap at 42c has lines through it so its not a window in my book. I imagine we will all have to agree to disagree and live with the interpretation that best suits the individual.

Personally I will stick with Bulkowski he has published and sold at least 7 more books on technical analysis than Anfo has

The chart below highlights the window at 46c/46.5c which has now been filed

MNS Price at posting: 47.0¢ Sentiment: None Disclosure: Not Held
4 Upvote

1 Great analysis

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