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ecrich

01/04/06 8:52 AM

#11878 RE: msmag #11872

MSMAG, I mean no disrespect, but this gap thing is driving me nuts. I can find no support for your definition of a gap. I suppose if enough people can be convinced of a gap that doesn't exist the price might go there, but it's just not true.
I was almost starting to think I was wrong when we retraced to $2.59 the last time, but we went all the way to $2.01. Nothing to do with any gap. I can not find one single example of a gap that overlaps in price like our chart does.
The definition on chartschool is misleading, but many others including this one from investopedia cleary state that it is an area where "no trading" occurs.

"When the price of a stock moves very sharply up or down with no trading in between. Therefore, the chart shows a break between the prices (no line connecting)."

http://www.investopedia.com/terms/g/gap.asp