how to read the interday gap?

[robinxing]

any good articles on this ?

thank you

 

[NihabaAshi]

Quote from robinxing:

any good articles on this ?

thank you

How do you define a interday or intraday GAP?

Mark

 

[nazzdack]

I think robinxing is referring to the "opening" gap.

 

[tmarket]

Quote from robinxing:

any good articles on this ?

thank you

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1070+14719,00.html

Gaps are created for these main reasons:

1. To move the market in such a way as to cause the most pain to the greatest amount of traders as possible.
2. To keep as many people possible out of the move.
3. Or, to be used as a fishing expedition for suckers.
4. Reaction to overnight news.

Gaps differ slightly each day they are created, and this is based on a variety of factors. However, there are constants in each opening gap. The biggest gaps happen at key market reversals on the weekly and monthly charts.

There are general truths in what JC wrote in this article, but be awared that some of the probabilities of gap fills have decreased. In addition, his description of ES being hyperactive in comparison to YM is perhaps offbased, perhaps he was currying favor with CBOT at the time of writing.