V. 21:9 (30-34): Gauging Gaps by Thomas Bulkowski
Product Description
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.
GAP TYPES
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.
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.
GAP TYPES
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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