Replies to post #9649 on BHPA Inc (BHPA)

[Milo1]

Lol, Once the SMA50 catches up to the PPS you’re going to have A very difficult time recovering your shares. “Unhealthy/healthy” comment really plays no part in an emerging market stock rally

[rstar]

says the guy who lost his shares.lol. countless examples of gaps that don't fill. especially when market changing conditions for the security occur.
btc through 10k is such a condition.
next will be first filings and news from the co where we will also likely see a runaway gap that is never filled.

unhealthy to not fill the gap

$SRDPD! BHPA

[wallstreet1231]

Filling the gap doesn't apply to a stock with the dynamics of SRDPD - too many positives that trump a typical trade stock.

[User-65225]

Like the gaps on Apple from decades past? lol... When are they gonna fill?

[User-65225]

There are 4 types of gaps: Breakaway Gaps
Breakaway gaps are the exciting ones. These occur when the price action is breaking out of a trading range or congestion area. To understand gaps, one has to understand the nature of congestion areas in the market. A congestion area is just a price range in which the market has traded for some period of time, usually a few weeks or so. The area near the top of the congestion area is usually resistance when approached from below. Likewise, the area near the bottom of the congestion area is support when approached from above. To break out of these areas requires market enthusiasm, and either many more buyers than sellers for upside breakouts or many more sellers than buyers for downside breakouts.

Volume will (should) pick up significantly, not only from the increased enthusiasm, but because many are holding positions on the wrong side of the breakout and need to cover or sell them. It is better if the increase in volume does not happen until the gap occurs. This means that the new change in market direction has a chance of continuing. The point of the breakout now becomes the new support (if an upside breakout) or resistance (if a downside breakout). Don't fall into the trap of thinking this type of gap, if associated with good volume, will be filled soon. It might take a long time. Go with the fact that a new trend in the direction of the stock has taken place, and trade accordingly. Notice in the chart below how prices spent over two months without going lower than about 41. When they did, it was with increased volume and a downward breakaway gap.

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

[User-65225]

The reason why gaps usually fill in pennyland, is because these tickers are usually selling stock and gaps cause traders to pause their buying, which allows the dilution to hammer it back down... but SRDPD has ZERO dilution. There is none they could dump if they wanted to and it will remain this way for many months, maybe years. For us to fill the gap, current holders need to turn bearish and start dumping decent amounts down to $5. Its possible, but my gut tells me we will see the price move higher without getting near that gap, esp if BTC keeps climbing. Time will tell.

Conclusion
There is an old saying that the market abhors a vacuum and all gaps will be filled. While this may have some merit for common and exhaustion gaps, holding positions waiting for breakout or runaway gaps to be filled can be devastating to your portfolio. Likewise, waiting to get onboard a trend by waiting for prices to fill a gap can cause you to miss the big move.

Nevertheless, gaps are a significant technical development in price action and chart analysis, and should not be ignored. Japanese candlestick analysis is filled with patterns that rely on gaps to fulfill their objectives.

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