$SPNEC: Filling The Gap Phenomenon

Gaps

A gap is a hole between prices. Kapag nagclose ang stock sa 10 pesos at kinabukasan nag open sa 11 pesos at di na bumaba pa doon ang price ay gap na agad yun. Yung 10.1 pesos up to 10.9 pesos ay tinalunan ng price kaya may gap.

Gap Trading

May apat na known gaps.

• A common gap: It generally occurs in a sideways markets. It is likely to be filled because of the market’s mean-reversion dynamic.
• A breakaway gap: It generally resembles a common gap but the gap occurs above a graphical resistance or below a graphical support. It signals acceleration in the new trend.
• A runaway gap: It generally occurs within the trend but it confirms it more, therefore, it is a continuation pattern.
• An exhaustion gap: It generally occurs at the end of a trend and close to a support or resistance level. It is a reversal pattern.

Maraming traders ang nagtitrade ng gaps and some created strategies and filters for gaps.

May popular na “filling the gap” na kinakatakutan or ikinakatuwa ng ilang traders.

Gap Filled

Hindi lahat ng gaps ay nafifill the same way na hindi lahat ng oversold ay nagbobounce.

Nagkakaroon ng GAP dahil sa structure ng candlestick chart na may opening price at may closing price. Bawat timeframe ay kailangan bumuo ng bagong candle regardless kung may galaw or wala ang price.

Yung ibang chart gaya ng line,kagi, renko at iba pa ay walang GAP.

GAP is not special.

Structure lang ng candlestick chart ang gumagawa niyan.

Maraming stock ang may maraming gap especially mga illiquid na stock.

Kung nagrerely ka sa idea na ififill ng price ang GAP ay para ka na rin nagpipredict ng mangyayare.

Walang may nakakapredict sa mangyayare. Mas mainam na ang strategy at approach mo ay reactive sa ginawa or ginagawa ng market kesa sa predictive.

Kung Baby 2.0 user ka ay wala pang entry kay SPNEC.