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what constitutes a gap

A gap is the difference between the previous days close (the candle stick lower body) and the next days open ( the candle sticks upper body). Gaps are filled when candle bodies are involved. Not just intraday price flux.

Gaps are caused by retail emotion and often called emotion gaps in price. The daily body is said to be the retail mindset for the days trading and shadow tails the daily concensiuos. Variations in size of body or shadow tail, determine degree of opinion.

While books can vary on what constitutes a settle of emotion, in a gap in mindset. Experience has taught me retail mindset is needed to over come emotion mindset. Thus candle bodies are needed to fill gaps in emeotion. And daily opinion (which changes) and concensious during the day, does not over come mindset. Thus the emotion is not settled.

It is said 90% of common gaps fill. While there is no proof it's not 80% or70% or 95%, all technical annalysis will agree most all gaps in emotion, do come back and get revisited.

If one trades gaps as a trading style, ignoring candle tail gaps fills, as settled, causes experienced traders to miss many profit oppertunities. Because 90% of the time, these shadow tail fills are actually re-visited. Just like blank gaps.

As with all Technical analysis, evaluation is in the artists eye. Some chartist see patterns where others don't and others see technical indications some don't. Brush strokes can vary, and shades of gray interpreted to different degrees. Books are guides, not black & white, within the technical analysis world.

With GAPS; Experience has taught me, passing up a gap because a candle shadow tail has re-visited the gap area, loses profit oppertunities. And I don't count tail fills as filled gaps.

Been trading since 2002 and teaching TA & charting at IHUB since 2004. Been trading gaps as not filled by tails and closing for profits for years.

You can ignore tail filled gaps if you want. I personally don't