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Wednesday, July 31, 2019 9:13:29 PM
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 how, following the gap, the prices have come down to at least the beginning of the gap; this is called closing or filling the gap.”
So again, what? Done being dumb? Yes? It is understood that dumb = GXX* right? And don’t get mad at me for this, I am not the rules maker on gap closing and I didn’t dilute GXX* to oblivion. That’s all just a quick FYI.
Go DCGD. Ready when your are Mr. C!
My posts are my opinion and not a recommendation. Always do your own DD.
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