InterDigital Inc (IDCC)

[olddog967]

tnyellowtomcat: I don't follow technical analysis/charting. I would agree that based on charting definitions. a "gap" occurred in IDCC's trading prices on June 11 and June 12. HOWEVER, again going by definitions, of the generally recognized four types of gaps, the "gap" would be classified as a "commom gap", which as the term implies can be relatively common and has little trading significance. In the absence of any specific news or event I would consider "common gaps" to result from normal trading activity.


"Common gaps provide no significant analytical insight, and are regular occurrences. Common gaps are small, meaning the price difference between the two gapping bars is not significant. Common gaps occur frequently in stocks from one day to the next, and in currency markets over the weekend.

Common gaps are typically, but not always, "filled." For example, if a stock closes at $50 on Monday, and then opens at $50.25 on Tuesday, the price will often move back to $50 within the next few days. If the price goes back to where the gap started, technicians consider the empty space filled."

https://www.investopedia.com/university/charts/charts8.asp


"Common Gaps

Sometimes referred to as a trading gap or an area gap, the common gap is usually uneventful. In fact, they can be caused by a stock going ex-dividend when the trading volume is low. These gaps are common (get it?) and usually get filled fairly quickly. ”Getting filled” means that the price action at a later time (a few days to a few weeks) usually retraces at the least to the last day before the gap. This is also known as closing the gap. Here is a chart of two common gaps that have been filled. Notice that after the gap the prices have come down to at least the beginning of the gap? That is called closing or filling the gap

A common gap usually appears in a trading range or congestion area, and reinforces the apparent lack of interest in the stock at that time. Many times this is further exacerbated by low trading volume. Being aware of these types of gaps is good, but it's doubtful that they will produce trading opportunities."

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:gaps_and_gap_analysis



"COMMON GAP
Of the four types of gaps, the common gap, not surprisingly, occurs most frequently. It can occur to the upside or downside and can, depending on the security being charted, occur daily. A common gap is characterized by an opening price that is outside the range of the previous trading day.

Common gaps also tend to be found during periods of trading indecision or congestion. During such periods, you will find the price of the stock or commodity moving within a defined trading range with little volatility as there is a balance between buyers and sellers, with neither group having the power to sustain a
prolonged upward or downward price movement."

(snip)

"Common gaps do not tend to be overly predictive of future price movements, since they rarely mark a fundamental shift in the market or in the underlying interest in the stock. They tend to be relatively narrow, and are typically filled (over time, prices trade through the gap). One cause of a common gap can be a “surprise” event regarding a news item or an earnings announcement.

https://www.aaii.com/journal/article/when-nothing-says-something-understanding-price-gaps