Good topic Free, and a very serious one for those who want to hold onto whatever profits they have made in the market...
IMO, everyone looks at different info as signs and those signs may change from crash to crash. Just got to do your own research and find out what makes you nervous or confident about current market conditions, have high conviction, and then back it up by taking action (keep buying, wait and see, go market neutral, or go net short etc).
Inaction is what will wipe out a lot of people from the game.
Hell, you could even call your very own post as a sign...when the HC forum starts to talk more about a crash, at some point that could be a very reliable indicator of an upcoming sell off...
Anyway, I'm preparing for the "worst" case scenario because I just think it is the prudent thing to do to be successful in this game, but having said that, I am still buying stocks every single day with overnight exposure...with a net long portfolio...
Basic candlestick construction buddy.
You need to manually construct the weekly candles from the daily ones (Weekly candle = Open on Monday, Close on Friday, Highs/Lows from Mon-Fri) and you'll see why one gap "disappears".
IMO, purely from the charts, the more significant gap is the one that shows on both timeframes. Some people trade gaps off daily charts only and some off the weekly. A gap that appears on both charts will generate interest from both groups of people compared to a gap that appears on only one of the timeframes. However, other info can be used to confirm the significance of a gap/level such as volume, depth.
