Hi @dariusgearAfter long periods of consolidation in a...

Hi @dariusgear

After long periods of consolidation in a downtrend, in SAS case since June 2017, there is a period at the bottom of a SP chart trend where the price moves sideways in a horizontal channel. Volumes are typically lower and price spikes become smaller. Once this period is achieved the majority of traders have long since moved on and the retail investors are either clinging on from buying too high or become despondent and sold out at a loss. Institutional investors and traders rarely have their order on market for all to see. A bit like not showing your hand in poker. Retail holders are more likely to have their orders sitting in market as they don't have time to sit on a stock and watch price action all day. Once majority of retail have finally capitulated and sold, Gaps in prices start to appear. i.e no stock for sale between .066c and .075c in SAS case. This results in a Thin sell side and the stock price is easier to push higher during periods of demand.

There are (me included) long time holders, investors, traders, dreamers and lurkers that try to pick the bottom or average down from buying in too high (of which I am guilty). 

SO in essence. Large Gaps =  Thin seller pressure. Good news and stock soars, Bad news and a new downward cycle of sellers begins until further consolidation occurs once more.

Hope this helps