cableguy
1 day ago
Gaps don't have to fill at all, with good news they don't fill till much later when the run is done. ASII
https://search.brave.com/search?q=do+stock+gaps+have+to+fill&source=desktop&summary=1&summary_og=23600dc42156968f08231b
Do Stock Gaps Need Filling?
Based on the search results, here is a summary of the answer:
Not all stock gaps need to fill. While it is true that many gaps are eventually filled, there are exceptions. According to some sources, only about 8 out of 10 gaps get filled (AJ Monte). Others argue that not all gaps are created equal, and some types of gaps, such as exhaustion gaps, are more likely to be quickly filled and reversed, while others may not fill at all (Tom Bruni).
Factors influencing gap filling:
Technical resistance: If a price level has previously acted as resistance, it may not be filled, even if the gap is eventually closed (Gap Trading: How to Play the Gap).
New trends: If a new trend develops, a gap may not be filled, as the market participants become impatient and decide to take positions without waiting for a pullback (Do All Gaps Need To Be Filled?).
Type of gap: Different types of gaps, such as common gaps, breakaway gaps, or exhaustion gaps, have varying likelihoods of being filled (Gaps and Gap Analysis [ChartSchool]).
Volume: Gaps with low trading volume may be more likely to be filled quickly, while those with high volume may take longer or not fill at all (AJ Monte).
Conclusion: Stock gaps do not always have to fill. The likelihood of a gap being filled depends on various factors, including technical resistance, new trends, type of gap, and volume. As a trader, itβs essential to understand these factors and develop a strategy that takes them into account when trading gaps.