SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Stock Attack II - A Complete Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Shread who wrote (40502)10/18/2002 11:36:17 AM
From: Kip518  Read Replies (1) of 52237
 
RevShark:

Filling the Gaps
10/18/02 11:10 AM ET

I mentioned the other day the conventional belief among technicians that gaps tend to be filled. I didn't have any statistics to back that up, but in my experience I certainly had found it to be the case.

After I wrote a bit about this Jason Goepfert, who operates a great site at sentimentrader.com, did a very nice study of the phenomena. Jason looked at all gaps in the Nasdaq over the past five years to see how fast they were eventually filled.

Here are his results:

Gap is Filled Within...
Same Day 5 Days 10 Days 30 Days 60 Days

Up gap (53) 40% 64% 79% 87% 94%

Down (47) 36% 62% 74% 89% 93%

As you can see, a substantial number of the gaps are filled sometime during the same day, and the vast majority are filled within a month. Interestingly, gaps on both the upside and downside are filled at remarkably similar rates.

Clearly, based on this data there is a great likelihood that gaps will be eventually filled. Those gapping holes in your charts should be carefully monitored, and if we start moving in proximity to them a bet that they will be filled may be worth considering.

Speaking of gaps, we have now filled this morning's gap down and are in the green. There is a lot of upside stickiness in this market, and I think that can be attributed to funds that may be suffering from performance anxiety. Not being invested during a rally is a sin far worse than actually losing money for the benchmark-focused giants.

thestreet.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News