{"id":422386,"date":"2018-01-25T20:29:05","date_gmt":"2018-01-26T01:29:05","guid":{"rendered":"https:\/\/goldtadise.com\/?p=422386"},"modified":"2018-01-25T20:51:05","modified_gmt":"2018-01-26T01:51:05","slug":"gaps-3","status":"publish","type":"post","link":"https:\/\/goldtadise.com\/?p=422386","title":{"rendered":"Gaps"},"content":{"rendered":"

Sometimes we forget there are always those new to TA who read here.<\/p>\n

Question from a member<\/p>\n

Fully, Can you help me understand the significance of “gaps” and why one should expect them to close as Rambus mentioned in his last commentary. Thanks, XXX<\/p>\n

……………………………………………………
\nOK<\/p>\n

There are few things more frustrating in Chartology than the dreaded… “Gaps”.
\nAnd few thing as sure… as “ALL GAPS MUST FILL”<\/p>\n

For Example They happen on a daily chart when the price opens Above( bull gap) yesterday’s high ….and stays above all day.
\nOr Below yesterday’s Low ( Bear Gap) and stay below all day<\/p>\n

So if you look at a candlestick or bar chart …you can spot them…there is a space …small or large… in the pattern<\/p>\n

For some strange reason almost ALL gaps fill at some point.
\nWhich means sooner or later the price will return to the gap price and trade within the gap before resuming the trend….or NOT<\/p>\n

If you are long gold and it takes off after a gap and doesn’t close it…then odds are your going for a ride up and down
\nBUT the sooner the gap fills and then hopefully the price resumes up…the safer you feel staying long<\/p>\n

Some gaps take YEARS to fill and are no consequence to short term traders
\nGaps on the daily are common but weekly not so much<\/p>\n

There is still an open Gap on the HUI chart from the big hard drop in 2013….that’s rare but we can be confident at some time it will fill.<\/p>\n

\"\"<\/a><\/p>\n

There are a rare few gaps ….we call the breakaway gaps that don’t fill for a long time if ever…..just to keep us guessing.<\/p>\n

One more point. Gaps OFTEN happen when a pattern ( usually a big pattern ) finally breaks out one way or the other<\/p>\n

It gaps the trend line ….so if it Gaps up…those waiting for the breakout have to chase …unless they are patient and brave enough to wait for the gap close \/ backtest…Tricky Stuff eh ?<\/p>\n

Hope this helps
\nGood trading
\nFully<\/p>\n

——————————————————————————–<\/p>\n

From: Lee Salisbury
\nSent: January 25, 2018 4:07 PM
\nTo: Gary Fullgold Crown
\nSubject: Gaps ???? <\/p>\n

Gary, Can you help me understand the significance of “gaps” and why one should expect them to close as Rambus mentioned in his last commentary. Thanks, Lee<\/p>\n","protected":false},"excerpt":{"rendered":"

Sometimes we forget there are always those new to TA who read here. Question from a member Fully, Can you help me understand the significance of “gaps” and why one should expect them to close as Rambus mentioned in his … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-422386","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/posts\/422386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=422386"}],"version-history":[{"count":0,"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/posts\/422386\/revisions"}],"wp:attachment":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=422386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=422386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=422386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}