struggling to close gap, page-9

chuti...

I have several thoughts on gaps...

1. They are purely psychological and have no basis for being filled, but usually do and;

2. There is a mathematical reality that there will be a buyer and seller at any given level if the stock is allowed (or facilitated) to go there.

But in my view, gap theory is full of gaps...lol, sorry about the pun.

For example...intra-day gaps do not show up on the daily charts, example...a stock closes the night before at 29c...opens next day at 28.5c, goes into a trading halt whislt trading at 29c and reopens at 40c, eventually closing the day at 50c. The chart will simply show a long white candle, but in all reality we have a gap between 29c and 40c.

Chances are it will not fill because the daily chartists will not realise it is there.

Had the very same situation been repeated, but instead of an intra-day announcement we get a pre-open announcement, then the charts will show a massive gap from 29c to 40c...which more than likely will get filled.

So...whilst gap theory is to some extent real, it is only so due to a self-fulfilling process.

In my mind, gap theory is the ultimate coup for those who proliferate the dweeb state.

Cheers!