isn't there a GAP this morning created from yesterday. doesn't everyone say GAPS must be filled? Thoughts on this GAP or any GAP. I hate the fact that these"GAPS" are manually manipulated to be filled no matter what. what happens if the price goes straight up to $4. does that mean, the price must come down again to $2.90 to fill it? we never thought that GAP at $3.31 would fill after recent earnings but it did.
I know there was a guy here the other day who called it and claimed to buy back into the filling of it, but he's not "everyone". There's lots of info out there on gaps filling, and from what I've read, "most" of the time they do fill. However, that's a qualified "most", which can also involve a period of "years" - often, it appears not. There are PHD's who have gone to the effort of using some statistical analysis that math types might understand, and could apply those formulas to our little gap - the percentage of yesterdays range, the this of that... etc., and so on.. But for a .05 gap, I'm not sure it's worth the effort, and what you'd learn from it, as it doesn't "always" fill. Here's something I found from an article written a few years ago for general digestion from a 2008 issue of Futures Magazine" by a Steven Bobbitt titled "Gartley's Gap Theory Explained", and the excerpt on the portion that addresses Gap Filling:
"TO FILL OR NOT TO FILL
After a gap occurs, a common occurrence is for the gap to get filled. This refers to price retracing back to the previous price action. Price does not have to stay within the gap range and close inside of it. Rather, it only needs to trade through the gap. Those using candlestick charts frequently see the tails of the candle filling the gap instead of the candle body.
Most gaps do get filled at some point in time. However, there are exceptions. Numerous gaps are still in need of filling from some of the high-flying stocks in play at the turn of the century when the dot-com boom went bust. In fact, the Nasdaq 100 index has an open 105-point gap dating back to Feb. 15-16, 2001 (see “Still open”)."
It's all very interesting and fascinating stuff, but I'm personally more concerned with the beating the price takes on no news, presumably from those bad players and computers that throw out crazy high bids, and then retract them.... and stuff like that. Again, lots of info out there on Gap theory.