GTinsdale: What you actually described is an hourly gap, not a day gap because the prior day it had a high of 50 before closing at 45. Then when it gapped at opening to 50, it is an hourly gap, not a daily one, so it is not officially a gap if you are using daily charts. Gaps in smaller time frames have a greater chance of not filling sometimes, e.g. if it closed at 45, then gapped at 46 the next day and rallied strongly to 50 intraday, it might not fill that gap at 45, but if it gapped to 55 on dailies, then it is more likely to fill.
No such thing as pre-filling of a gap, by definition. What happened in prior timeframes is irrelevant to the gap rule. What is important is what happened in the immediately prior timeframe, such as the range of the stock the prior day only.
Hope that helps, but I will be illustrating this in more detail in my TA Training... |
