The Thread Formerly Known as No Rest For The Wicked Message Board

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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked

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To: ok1day who wrote (52359)	7/14/1999 7:47:00 AM
From: stan s.	Read Replies (1) of 90042

TFSM, Hi Ossnat. When "gaps" (windows) are referred to in the context of filling and/or support there has to be a space between the high of one day and the low of the succeeding day. My data shows a high of 41.81 and a close of 41.31 (41 3/8 or so) on 7/8/99. This was followed the next day by a pure gap up and a low of 44.125. This left a window or "gap". These gaps are almost but not always filled. Some traders play them as a position to short to, from a higher point, knowing the likelihood of a fill. Conversely, some longs wait 'til they get filled before taking a long position. The support (which is moderate) is at the "gap from" point of the real body's high point (open/close) in this case 41 3/8. But remember...for the gap (window) to close, a dip need only overlap to the high of the "gap from day"....shadows are fine. That's why the gap was filled yesterday. The intraday dip (low) of 41.125 easily took out the upper shadow (high) of 41.81 of July 8th. Stan

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