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Strategies & Market Trends : TA setups-ex th traders -- Ignore unavailable to you. Want to Upgrade?

To: cthruu who wrote (6541)	4/22/2005 3:25:26 PM
From: dfs405	Respond to of 7682

Hi GP --I only consider the open and close and do not use the high/low shadows --that however is just my preference and an argument can be made that a gap is filled with the shadow--my style is considered the more conservative of the two but I do not think either one is wrong--this is a message I posted to Ray a short while ago about my thoughts on gaps and an actual definition--it is clear in the actual definition that they say bodies and not shadows for one definition--shadows are considered as a second definition-here it is: ----------------------------------------- Here is a good explanation of what I consider a gap--I have learned and always followed the rule that a shadow cannot fill a gap and only a body can. If this is not a hard steadfast rule, then it is at least the rule I follow- the writer of the following definition seems to indicate that he thinks the same as I do. Always consider volume as an indicator of the gaps strength and don't pay too much attention to common gaps that occur during a trend without much extra volume associated with it. Also some stocks tend to gap quite frequently and are full of holes as I like to say, so I usually just avoid this strategy completely when viewing one of those type charts. Another thing to remember is that a gap occurs on the left side of the chart when viewed and can only be filled by a full body on the right side of that gap- any occurrence or fill to the left of the aforementioned gap area is irrelevant . Hope this helps. :-) Gaps by Definition A gap occurs when a candlestick body doesn't fall within the range of the previous candlestick body, a more loosely interpreted definition of a gap, requires no overlap between the shadows, making it obvious on a bar chart as well. You will often hear "All Gaps Get Filled", which is untrue. While the vast majority of gaps do get filled, you can find some charts, where a gap has never filled. Depending on how you define a gap, should base your definition of a gap fill. For instance I consider a gap when 2 bodies don't overlap, so I wait for a body fill to call the gap closed. If one was using the criteria of shadow overlap, a gap fill would occur with a shadow fill. Gaps are typically continuation patterns, and sometimes mark the 50% point of a move. They become more significant as the stock approaches the level of the gap as it often acts as a magnet. During a gap fill, it is considered bearish closing below the bottom of the gap and bullish closing above it. Once formed gap's will often serve as strong support/resistance levels even after being closed for some time.

To: cthruu who wrote (6541)	4/24/2005 5:43:48 PM
From: robb3267	Respond to of 7682

The VIX and VXN which have been dormant for many months both broke out about two weeks back and are backtesting that breakout level. If they were stocks they'd look bullish here....potentially bearish for the markets. stockcharts.com[w,a]dhcayiay[dc][pb50!b200!b20!f][vc60][ila12,26,9][J49521414,Y]&pref=G stockcharts.com[w,a]dhcayiay[d20040123,20050423][pb50!b200!b20!f][vc60][ila12,26,9][J49123729,Y]&pref=G

To: cthruu who wrote (6541)	4/24/2005 5:49:41 PM
From: robb3267	Read Replies (2) \| Respond to of 7682

GP most of your homebuilders look like they are in bearish flag patterns here. First the sector chart then individual plays. stockcharts.com[h,a]dhcayiay[dc][pb50!b200!f][vc60][iub14!la12,26,9][J48858951,Y]&pref=G stockcharts.com[h,a]dhcayiay[dc][pb50!b200!f][vc60][ila12,26,9][J49084137,Y]&pref=G stockcharts.com[h,a]dhcayiay[dc][pb50!b200!f][vc60][ila12,26,9][J49551340,Y]&pref=G stockcharts.com[h,a]dhcayiay[dc][pb50!b200!f][vc60][J49064040,Y]&pref=G Some of the recent leading sectors aren't looking so hot here... stockcharts.com[h,a]dhcayiay[dc][pb50!b200!f][vc60][iub14!la12,26,9][J43986253,Y]&pref=G stockcharts.com[h,a]dhcayiay[dd][pb50!b200!f][vc60][ila12,26,9][J46483382,Y]&pref=G stockcharts.com[h,a]dhcayiay[dc][pb50!b200!f][vc60][ila12,26,9][J49394353,Y]&pref=G A look at some of the indices... stockcharts.com[h,a]dhcayiay[dc][pb50!b200!b20!f][vc60][ila12,26,9!lya7,14,28][J49496317,Y]&pref=G stockcharts.com[h,a]dhcayiay[dc][pb50!b200!b20!f][vc60][ila12,26,9!lya7,14,28][J49515919,Y]&pref=G stockcharts.com[h,a]dhcayiay[dc][pb50!b200!b20!f][vc60][iub14!la12,26,9][J45782664,Y]&pref=G Should be an interesting week ahead...