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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Evolution who wrote (45142)5/20/1999 3:17:00 PM
From: marc chatman  Read Replies (2) of 95453
 
A gap is where the low price of one period is greater than the high of an adjacent period (typically, the period is a day, but it could be an hour or week, etc.). The gap can either be up or down, and there are several different types of gaps. Each type gives a different signal and calls for different treatment. Often, after hours news leads to the gap up or down because it creates an order imbalance at the next day's open.

Filling a gap refers to the tendency of a stock to retrace its move until the price returns at least to where it was prior to the gap up or down. Some gaps can remain open for a very long period -- even years.

Crossing refers to one of the methods by which a specialist executes a block trade -- if a firm has a client with a very large buy or sell order, they may look privately for sellers or buyers, as the case may be, and when they have enough to match the buy or sell order, the specialist will "cross" the shares (i.e., execute the trade) on the exchange.

edit: Ah, I see it's already been answered. I type very slowly. <g>

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