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Hans
Our approach to gaps is to assume that they don't exist! What I mean is in
our own proprietary systems, when we enter the daily price activity, the
software checks to see if there is a gap, either up or down. If there is,
we change the Open to the previous day's close to fill the gap.
I know this flies in the face of chartist, but our thought is that there
really isn't anything called a gap, just trades that didn't happen due to
the arbitrary closing of the market. We sort of think of these trades as
happening between the close and the open. Sort of a mental electronic
market <G>.
Guy
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Hans T. Hingst
> Sent: Friday, September 04, 1998 9:36 AM
> To: metastock@xxxxxxxxxxxxx
> Subject: Gaps
>
>
> (Sorry if you receive this twice. It appears the address I have for the
> List does not function correctly).
>
> Hello all. A question please (actually two).
>
> Since "gaps" often blow stops out of the water, should they be viewed or
> handled differently (particularly a "gap down" when long), than
> say, a three
> or four day retracement which may take you to the same point?
>
> Aren't gaps typically caused by actual or expected, heretofore, unknown
> events?
>
> Thanks,
>
> Hans
>
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