GAPS

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GAPS are very easy to identify in that they are openings in the price chart where no trading occurred.  They are a void in price.  A point at which no buyer or seller could be found.  This can occur when there is an imbalance of orders where there are a large number of buyers and the sellers must be offered a premium to entice them into to parting with their shares.
Looking at the graphic above, you can see where the prices have closed on one day, and the trading began the next day at a point well above or below the previous high or low.
There is an old adage that a "gap must be filled" and that the prices will return to complete the area where the stocks did not trade.  Many trades have been missed waiting for this to come to past.
In Candlestick language, the gap is called a Window.
 
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