cptinsanoThere are generally 3 types of gaps, Breakaway Gaps,...

cptinsano

There are generally 3 types of gaps, Breakaway Gaps, Continuation Gaps and Exhaustion Gaps. What we saw on Monday was a Breakaway Gap and can be defined as a gap in price on heavy volume at the start of a trend (up or down). The gap least likely to be filled is a Breakaway Gap. This is especially true with higher volume and most importantly when they jump previous pionts of resistence eg. the resistance @.33c on 4/11.
The more charts you look at the more you can see that eventually almost all gaps get filled, exactly why I'm not certain. When you look at MAE almost all gaps get filled. The last gap that is still open is on 16/9/08 when it gapped down .5c on opening the next is 30/7/08 gapped down 1.5c to open at $1.12...I'm looking forward to THAT gap being filled.
I know I haven't explained the reason why gaps get filled but because Monday represents the start of a new trend I believe it wont be filled. Lets just leave one open at levels MAE will never be again...Anyway thats my take on the Gap thing, cheers