Category: Money Tips Date: 2006-03-22
Continuing gap
Highlights: Breakthrough gap created after a gap, called the continuing gap, continuous measurement of the gap with the role of investors in accordance with the results of participation in continuing gap measure after the increase.
Break the trend of gap marks a new milestone, if the continuous spiraling if prices continue to be gaps in the situation to continue upward. This gap is called continuous gap. The reasons for the gap caused by sustained most of sudden good news continues to play a role in supporting the stock price higher.
The number of continuing gap appears to be less than the previous two kinds of gaps, usually in the form of rising stock prices after the break to the next order or a reverse form of a half-way there, it continued to predict the price gap may be about to move away from a possible future, so called to measure the gap, method of calculation as follows: starting date from the order form, stock prices continued gap between the lowest point of the vertical distance as the standard, and then to sustain the gap as a starting point, the vertical distance up to do to calculate the end of this section the approximate price volatility.
Breakthrough gap indicates the beginning of a price move, continuing gap is a fast-moving or near the midpoint of signals corresponding to failure were also gaps in the end how it works as an operating basis for the gap is very important for investors in a ring. In general, leaving a gap in price accompanied by a larger volume, this is the bull market, a symbol, it should continue to hold the stock or when you buy in the correction, continuous gap in the gap after the break appears the majority of these two gap will not be covering in the short term. In a long-term or significant upward trend, there might be two to three mid-gap, extreme occurs when the four, so far, according to statistics the author, in addition to ST plate Office (endemic in China's stock market), in a wave continued to Quotes in Shanghai and Shenzhen stock markets have not yet found stocks more than four half-way gap.
Case Study: Tsinghua Tong Fang (600100)
The stock scenery after a while 98 years to 99 years in the second half of quiet a long time, in early May dropped to 24.50 yuan or so (see 1), in the early Quotes 5.19, the stock rose slightly on June 17 breakthrough order form, the formation of the first gapped a gap (see 2), this gap is recognized as a breakthrough gap, June 18 to form a small gap, June 24 has left a gap gapped (see 3), as do to measure the gap, we see that the gap location is 46.50 yuan, its probably the price volatility is 46.50 + (46.50-24.50) = 68.50, while the highest price followed by Tongfang 68. 09 yuan (see 4), the error is very small, we can see that the role of the continuous measurement of the gap gains forecast price is still a reference significance.
In practice, the break after the gap can serve as a buy signal, because it marks a turnaround in the establishment, continuing gap also can serve as a buy signal, since the theoretical increase for the remaining half. If the gap to 3 days after the break has not yet covering its basic can confirm that is not an ordinary gap, but a breakthrough gap, this time as another persistent gap behind the rally will indeed no doubt that at this time get involved in a short-term profits.
