V. 21:9 (30-34): Gauging Gaps by Thomas Bulkowski

V. 21:9 (30-34): Gauging Gaps by Thomas Bulkowski
Item# \V21\C09\187BULK.PDF
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Gauging Gaps by Thomas Bulkowski

Should you trade the gap? Here are some gap performance numbers to help you decide.

Suppose you’ve been following a chart pattern. Say prices gap upward, piercing the trendline in a breakout. Do you buy the stock, expecting an unusually large gain? How long will it be before prices return and close the gap? I will address those questions here.


Prices gap when today’s high is below yesterday’s low, or today’s low is above yesterday’s high. A chart of the pattern will show a gap between the prices.

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