Ampex Corporation (AEXCA) Message Board

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Technology Stocks : Ampex Corporation (AEXCA)

AMPX 11.95

-1.9%

1:29 PM EST

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To: Stephen M. DeMoss who wrote (5156)	2/2/1999 2:26:00 PM
From: Ed Perry	Read Replies (2) of 17679

Gaps Need Not Be Filled! Yes, you heard it here on SI! The fact is that gaps happen all the time on inter day charts and even more frequently on half hourly and five minute charts. However, the same glaring gap on a daily chart, if it occurs on a Wednesday will not show up as a discontinuous price movement on a weekly chart. Unless, of course the gap occurs over Friday to Monday. Here, suppose one were then to start the week off on Tuesdays? What would happen now? The fact is that a gap is a function of time frame chosen, market volatility and how the MM keeps his order book. Therefore, I think the old saw about gaps must be filled is at best only a partial truth and perhaps misleading as well. Ed Perry

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