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Gaps (Based on daily datas) |
02-Jan-09 |
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Introduction
If the lowest rate today is higher than the highest rate the day before or vice versa, we call this "gap. Such gap results from sudden changes surrounding a title and causes a re-valuation. Usually, gaps are considered as trade-signals. An upward for "buy" and a downward gap for "sell" signal. But there are of course subtleties:
The Three Gaps |
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Break-Away Gap (Ausbruchslücke)
If a price-information is complete and the stock is grounded, this gap signals the beginning of a new significant movement. |
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Runaway Gap (Fortsetzungslücke)
This gap is caused by an upward trend of a stock and confirms the price-development. |
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Exhaustion Gap (Erschöpfungslücke)
These gaps appear often towards the end of an important price-information. |
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Advice |
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75% of all gaps are closed. |
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You better examine buy-sell-candidates, resulting from this method, with additional analyzing methods. |
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And as always: Buy or sell only if you have a good feeling about it! |
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Symbol |
Direction |
^GDAXI.csv | UP |
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ATTENTION! READ THIS DISCLAIMER
The information expressed on this pages is based upon the interpretation of available data. The data being presented was obtained or derived from sources believed to be accurate, but Webotron can not and does not guarantee the accuracy of these sources which may be incomplete and or condensed. The data and information presented is provided for informational purposes only, and is not offered as a basis for trading in securities nor is it offered for that purpose. Users of the Service should conduct their own independent investigation before making any investment or business decisions with respect to securities covered by the Service. Neither Webotron nor any of its data or content providers shall be liable for any errors in the information or delays in its delivery, or for any action taken in reliance thereon. Nothing contained herein should be construed as a recommendation to buy or sell any securities.
Keep in mind: "There is risk of loss in all trading!" |
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