Do tails fill gaps?

[creppie]

BZCN -- Do tails fill gaps?

2 tail-filled gaps left to fill?

[creppie]

MCCY gap filled in 15 days.

[Cowboy]

Gap is now officially closed...now it depends on support. Tommorrows close will tell the tale..if a candle is formed that covers at least 50% of todays candle to the upside then it would be a strong indication of a reversal.

[creppie]

Debated MCCY Gaps..

Dart's chart from post linked here.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=21818386&txt2find=mccy+gap+

[creppie]

"In all cases what must happen happens and there is nothing anyone can do about it."

Couldn't agree more.

[Cowboy]

creppie this is an argument I have had with many people/chartists over the years.

According to Japanese Candle Stick Charting the wick/shadow/tail satisfies the gap or closes the window BUT over and over that has proved to not work here in the US markets.

Dart and I argued this point on several stocks but over time I had to concede to him/her over this point. Each time the wick/shadow/tail was formed the stock still wanted to fill the gap with a candle body and until that was satisfied the gap was not filled.

It has been a point of frustration but in each case until the gap was covered by the candle body it was not filled.

Understanding the psychology of the markets today everyone is convinced that unless the gap is closed by the candle and not the wick it is an open gap.

To watch this situation in process a good example is MCCY. There is a gap that needs to be filled at .315. This gap was created at the open on 7/23/07 when the stock opened at .34.

Dart has pointed out the gap and the thread went crazy over his/her statement...guess what? That gap is creating lots of pressure on the stock and until that gap is filled the players are always going to be looking back over their shoulders wondering if it will fill when they are buying higher and trying to prevent what is going to happen.

There have been two attempts to close the gap and each time it has failed. The buyers are loosing the battle because they cannot sustain the run and therefore will loose the battle until eventually the gap is filled and the stock closes either at or below the gap. Typically the close will be below the gap and I would gather to say it will find support in the .30 range in that process and if support is lost then I believe it will retrace back to .20 before consolidating and resuming its run.

There are certain forces that are never overcome unless the proper dynamics present themselves to overcome or change the course of history. In all cases what must happen happens and there is nothing anyone can do about it.

[Zardiw]

Personally I never believed in all that 'filling the gap' crap.....lol.....But since enough people believe in it, it's prolly a self fulfilling deal.........z

[jk21]

an eternal question.....hey creppie, how ya been

[creppie]

Weigh in on the survey!
http://investorshub.advfn.com/boards/board_surveymenu.asp?board_id=10031

[creppie]

I prefer a solid fill so there's no question about it. Some will argue to no end that a solid fill isn't required. Based on that point alone, I'm willing to accept that alot of traders will forego placing bids at the far end of tail-filled gaps. This would translate to less MM pressure in making a market at that pps and ultimately may render tails-do-fill-gaps argument true. Either way, trade happy! :)