Graphic shape of the gap analysis multi-or air-side impulse Money Tips

Category: Money tips Release Date: 2006-08-11

We often from stock analysts see the "gapped up" or "gapped down," often heard the arguments shareholders who will fill out the gap. The first time to see the stock charts will find that stock prices are sometimes cases of non-coherent phenomenon. This stock is not traded rupture area we call the gap.

Research gap has become an important element of graphic analysis, if the combination of previously described reversal patterns judged, we may more accurately grasp the future trend of stock prices.

The gap is divided into four categories: general gap, breaking the gap, continuous gap, consumption gap. A gap in price. After a few days or a longer period of time to change back to the original price gap is called when we fill the empty, that is, the gap closed.

Common gaps: general appears in the transaction-intensive areas, some in a few trading days will fill the empty, appear in the order form may be the greatest; as triangular or rectangular shape was found there are many gaps, then judge this form of the order form.

Breakthrough gap: When the stock price to jump very far away from a form, then the real breakthrough began to break through the bigger gap, indicating that the next change will be more intense. This gap usually appears in the important shift patterns.

Continuing gap: This gap appears in the up or down on the way, characterized by the emergence of left-intensive transactions, surge or plunge in the middle of the region. Because it has a function of the magnitude of changes expected to the market outlook, it also known to measure of the gap. A breakthrough price point from the beginning, to the continuing gap in the vertical distance from a starting point, is the future stock price will reach the range.
Consumption gap: consumption gap often accompanied by rapid and substantial fluctuations occur, that is, the stock rise or fall rapidly, the stock price does not has the effect of changes in resistance, but the changes faster, so stock may run out of camel, full-speed up or plunge . This gap usually appears in the panic selling or consumption of an increase at the end.

Judged points:

An ordinary gap with the consumption gap will be closed within a few days can be identified from the gap location.

2, normal gaps and break through the gap may appear in the dense stock area, but the former in the shape, the latter is out of shape. Continuing gap is not an intensive form of stock, but the development of the middle Quotes.

3, breaking the stock price gap that began to change, continuing gap is a fast-moving near the midpoint of the signal Quotes, consume nearly end of the gap, said.

4, consume the same gap as the gap continued to fast and fierce with the price up or down there, these two gap difference is that the day of the event of the gap volume amplification, and the short-term no longer a large number of words, for the consumption gap.
5, continuous gap and break through the gap in the longer period of time will not be closed, while the average gap and consumption gap would be closed within a few days.

Gap analysis help us to select individual stocks, when many stocks at the same time there was an upside break, we should choose to buy individual stocks have produced breakthroughs in the gap, rather than go to a smaller increase in stocks.