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 : Classic TA Workplace
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Henry J Costanzo who wrote (136568)9/19/2006 4:10:15 PM
From: Galirayo  Read Replies (1) of 209892
 
No ... In all Frankness ... Thank You MC.

It looks like I'll be slowly 'Walking the Plank' in the direction of Log Charts. ARRRRGGGG !! ;)

C. Continuation or Runaway Gaps
Definition: Gaps that occur not within consolidation patterns or in breakaways from the patterns, but in rapid straight-line advances or declines -- and usually at about the midpoint of the advance or decline. Although these gaps occur less frequently than pattern gaps (area gaps) or breakaway gaps, they are far more valuable for the trader because of their measuring implications for the advance or decline in which they appear. For this reason, they are also called "measuring gaps." Runaway gaps are usually not filled for a considerable time.

Scenario:

In a strong advance from a consolidation area, prices may accelerate for a few days or maybe even a week or more, then lose momentum in the middle of the rally as the very extent of the move invites profit-taking. Then the price takes off again until the reversal or congestion day which ends the move. At just about the halfway point on such rallies -- or in similar rapid declines -- "a wide gap is likely to develop when the runaway is at its height."

Implications:

The pattern should continue as far beyond the gap as the move that preceded the gap "measured directly (and vertically) on the chart." Use log charts to predict the extent of advances or declines. (Advances tend to run -- in points -- beyond the price levels that would be implied on arithmetic charts and declines tend to be more restricted on arithmetic charts.) Err on the side of caution the closer the move gets to meeting the measurement implications.

Identification:

Runaway gaps are easy to spot in hindsight, but hard to differentiate from exhaustion gaps as they appear. Use price and volume action on the day following the gap for evidence.

ttrader.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