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To: Sully- who wrote (8189)	5/24/2001 7:11:36 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 10934

>> One thing I've found is that gaps tend to get filled...... sooner or later. From the 52 week low on 4/4, there are a number of open gaps. Yeah, but doesn't that gap theory work in both directions? Take a gander at all of the gaps that need to be filled during the fall from 150! Now that Janus and Magellan are through trashing the techs, recovery might be faster than you'd think. uf

To: Sully- who wrote (8189)	5/28/2001 8:48:59 AM
From: Jill	Read Replies (2) \| Respond to of 10934

Why gaps get filled: I guess everyone trades on the patterns. It amazes me too, as I watch some of the expert technical traders and learn more as I go along, how consistent these patterns are. Triangles in particular fascinate me--as they near the end of their formation, you so often DO see a sudden breakout in either direction. It's not that you can predict the breakout, but you sure can wait for its arrival--i.e. be ready to pounce. It's not an "if", just a when. The chart 'waits' for the news that will move it to fill the gap. The 'news' does not have to be objective (market famously interprets news how it pleases). That's why a true double bottom is one where the bottom is slightly broken on the second time round, "marginally" so, and then recovers on volume. I only understood this recently! That's because, once it breaks a support level (or "bottom") lots of traders come in going, "Oh, well if it broke this level, then it goes down to...." (Next support level). And if it doesn't, but recovers on good volume, those traders were wrong and that seems to indicate a true test of 2B.