Technical Analysts-- Are Gaps Really The Best TA Pattern?

[Mellow]

many years ago, lumber gapped limit up one day. Some went short. Then it gapped limit up again next day. Some more went short. Then it gapped again limit up next day. Some shorts when bust and some other went short. To make a long story short (literally) it gapped limit up 20 days in a row and all shorts were busted. This is your gap lesson today.

Many a sailor met their demise "walking the plank" as well. Lumber can be quite dangerous.

 

[murray t turtle]

Yes, don't believe everything you read.

Most writers, write not trade. Usually vague and incomplete with a minimal understanding, or worse yet they just regurgitate what they heard or read elsewhere. A very "telling" pattern. "Maybe if you had a grasp on pattern recognition, you would understand".

Gaps are TA tools like anything else, on their own they have minimal value. As RN pointed out upon statistical analysis profitable trading methods exist, fade or continuation. When they coincide with other "TA" events, they are much more powerful. Without the research they are as useful as a coin toss.

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True perhaps 95% /+ of the time ;
but i have a library full of better than average traders, some write well also.

Gaps can help a lot;
but mostly in a young[proven] UPtrend , young downtrend, trend, middle age trend,[+ ] old trend some may want to sell gaps,LOL.Matter of fact most mutual funds, + position traders, = trend traders, + derivative traders , real estate ......make money on over nite gaps.Rich Dennis said it so well ''insurance premium '' in overnite gaps

Wisdom is profitable to direct;
NOT a prediction.