Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (8198)	5/28/2001 10:53:09 AM
From: im a survivor	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. >> So with all that said......what the hell does it mean<ggg>? Seriously though......I firmly grasp the idea of gaps and them being filled, but what does your TA tell you about the gaps in NTAP, inparticular.......are we going to fill the downside gap or upside gap........do you see it filling that down gap to 12ish, or do you think it will set higher lows and then work towards filling the upward gap. As far as the upward gap....I believe we have one going well up into the mid 100's or thereabouts.......How long do you suppose it takes to fill that gap, and how many new gaps will be made, that need to be filled along the way? TIA....happy memorial day to one and all....especially those that fought for our country. As flawed as we are in many ways, it is still the best county in the world to live in, IMHO. Keith

To: Jill who wrote (8198)	5/29/2001 1:15:36 AM
From: Sully-	Read Replies (1) \| Respond to of 10934

Hi Jill! So good to see you around ;-) I guess my fascination with filling gaps is that when I first heard of the theory, I scoffed at it. I could think of 100 reasons why a downside gap (or upside for that matter) would never get filled. Unfortunately, I watched numerous top shelf companies have gap after gap get filled for a variety of reasons......... including FUD in the media that never panned out as the FUD piece claimed. Every single gap I monitored eventually got filled. That really got my attention. I've noticed that when a stock trends down close to an open downside gap, it is almost like an invisible hand puts a lid on things while the share price is drawn down fill it. Perhaps other TA guru's jump in to short in these instances, I don't know. It will be interesting to see how this theory holds up as time passes. I won't be surprised to see some breakaway gaps from the April lows remaining open. I will be surprised to see others stay open though. BTW, your 'true double bottom' discussion does not instill a lot of hope for a strong advance going forward near term :-\| Take care. Ö¿Ö