Mind Over Markets by James F. Dalton & Eric T. Jones & Robert B. Dalton

Author:James F. Dalton & Eric T. Jones & Robert B. Dalton
Language: eng
Format: epub
Publisher: Wiley
Published: 2013-05-28T04:00:00+00:00

Gaps

The final type of long-term excess is a gap. A gap is caused by initiative other timeframe participants who, between the market's close and the following day's open, change their perceptions of value. Price rejection, in effect, occurs overnight, as the market gaps above or below the previous day's extremes on the following day.

On February 9 (point F in Figure 4.50), for example, the yen gapped above the 8th's highs, igniting a buying auction away from the balance region that had formed from January 30 through February 8. During a gap, a market does not create the typical tail formation that so often signifies excess. Rather, the gap itself indicates swift price rejection (an “invisible tail”). In comparison to tails, gaps are actually a stronger, albeit less obvious form of excess. Note that island days are always confirmed by gaps.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.