Replies to post #1262 on Triple 000 and Sub-penny Chart Plays

[trader53]

MEDT 0.0007 Chart >

MEDT > "Gap" at 0.0014

Gaps are a significant technical development in price action and chart analysis, and should not be ignored.

There is an old saying that
"the market abhors a vacuum, and all gaps will be filled".

Breakaway Gaps
Breakaway gaps are the exciting ones.





If you see a "Gap",
expect the price to come back and correct the emotion!

When some news event, or, manipulation happens,
the price swings to extreme,
leaving "gaps" in the price,
from the previous day close,
to the next mornings open.

Breakaway Gaps are usually closed over time.
You see them in a multiday emotion run,
or walkdown,
where the stock price is trending around,
over several months.
The retail mindset returns to logic,
and fills the gap with the retrace.