I have set it to take profit at 18680. But what is the true value of the Gap? On IG Index yesterdays close shows 18638 and todays open at 18534. Is that right? Where do you guys find your info from? Thanx
as beautiful a gap close as I ever saw, and we didn't even have to wait for the dow to open!! BTW John, please thank Chartist for teaching me the 1-2-3, it has proven very useful. Did you notice it on the dow opening?
If you use Simons Lazy system on the Dow, there is evidence of a change in trend toward a new bullishness. If it holds for another positive close today, this is likely to filter through to the rest of us. All that's needed is to break through the current resistance level .... but then, what are the odds!
I was told there is no such thing as a stupid question, but maybe this comes reasonably close. I have no idea what the term GAP means so is this GAP you guys are talking about, is that the TOP40 index? Tnx
A gap might or might not happen, for the tests I've done, when it DOES happen, it WILL close. There is a tendency of about 60-70% of it closing on the day it occurs, with a 30-40% tendancy of it closing the day after it happens, and a 10% chance that it closes on the third day .... if it doesn't close that third day, the market tends to move in the direction of the gap for a week or month or so, before turning to slowly, steadily, close the gap. Interestingly, even the recent sell-off causing a nasty bear market, included a gap close of a gap which was left open a few years back. (more interesting was a comment from another forumite that the gap was history, forgotten about ... yet it closed). The reasons why gaps close are all very interesting, for those who want to google it. Gaps happen in RSA, because our market closes, unlike the US. If we close, and the rest of the world rallies or falls while we're closed, we open the following day substantially higher or lower than we closed. This is the GAP. Through trading behaviours between sellers, buyers, and those that held over-night, fear and greed causes the close. A close on the day is less likely when there is a "market moving event" like a rate cut, a pressidential assasination, and the like. On this forum, there are not really profitable low risk products to trade on the gap. But being aware of the phenomena can help substantially when you are looking to enter or exit a trade on the day.
CPS, GAPS are the difference between yesterday's close and todays open. If you are not day trading, then don't worry about them. The point of a gap is not the percentage chance of it being filled, rather that once the gap is broken, and starts getting filled, they almost always fill rapidly, and it is pretty easy to set target prices. As traders, we also take much bigger positions in a gap play, because we are fairly certain that the price is not going to revert.