Free Trial

Safari Books Online is a digital library providing on-demand subscription access to thousands of learning resources.

Share this Page URL
Help

Chapter 9. Closing the Gap - Pg. 205

Chapter 9 Closing the Gap " T he gap must be closed" is an often-heard saying among traders. This saying, however, seems to be based on lore rather than on hard evidence. The idea is that a gap creates a void in the price on a stock chart, and there is a natural tendency for market partic- ipants to want to "fill the gap" so that no visual void appears on the chart. Even those who claim that a gap must be closed differ widely in their interpretations.