Next Green Wave (fka NXGWF)

[Hunterdog]

Statistically that is correct. More than 90% of all gaps fill eventually. Personally however, I think it is a meaningless statistic. I think it's meaningless because one has to consider the ones that never fill.

Some gaps are justified and don't warrant filling. For instance, some companies are significantly undervalued to begin with and when the PPS catches up and brings them to a more fair valuation, those gaps don't necessarily fill.

Some companies experience a significant change in underlying fundamentals which cause a rapid increase in valuation. Those gaps don't normally fill either.

NGW fits BOTH of those scenarios.

But maybe my biggest quarrel with the whole "All gaps must fill" theory is that it is only quoted when the gap is up. I have never heard it espoused when a company gaps-down.

There are many, many examples of companies who have defied the "All gaps must fill" mantra.