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To: Investor2 who wrote (4152)1/22/1998 11:27:00 PM
From: Trader X  Respond to of 10786
 
<Why should a stock need to "fill the gap?">

good question.

In fact, a stock doesn't always need to fill a price gap. Many gaps are inconsequensial, like thinly traded stock gaps, small incremental gaps of 1/8 or 3/16, and ex-dividend gaps are all meaningless.

Breakaway gaps occur out of almost every decisive breakout from horizontal congestion. Most of them only show up on intraday charts. Volume usually decides if the gap will be filled. Diminishing volume price rise following a high volume gap up will usually be filled. If the volume following the gap is just as high as the gap itself, then it's not so likely to be filled. In otherwords, price support is created where the greatest volume of transactions occurs.

Since most gaps are very high volume, thus creating the gap, then that area becomes solid support for a minor pullback.

In the case of ALYD...
tscn.com

volume was high on the breakout in the gap area of 16 1/2 to 17 1/2, but was equally high in the 18 to 19 range. So price support may only allow the pullback to touch the upper edge of the gap near 17 1/2 to 18.

K2



To: Investor2 who wrote (4152)1/23/1998 8:22:00 PM
From: Runner  Read Replies (1) | Respond to of 10786
 
Today I sold all the stock in ALYD I bought last Friday for $18.00 a share. $ 6500 profit in one week. Whee!!!! I love Alydaar!

I feel like a Trader instead of a invester. Of course I still own a like amount that I am keeping for long term investing. I expect the price to soar next week because I sold, but I was tired of seeing ALYD go up to 21-23 a share, then drift down to 13 or 14 1/2, before it makes another run.

Of course, one of these days it will be a moonshot again, and that is why I am still invested in it!!!



To: Investor2 who wrote (4152)1/28/1998 3:14:00 PM
From: 45bday  Read Replies (1) | Respond to of 10786
 
Would you mind filing a retraction to your fill the gap story so this stock can get on with it already. I'm having a bad week with RMDY & VIAS and need something good to happen before the weekend! Thanks.