I'm a big fan of yours but I don't believe the study about gaps always filling 19% of the time. I believe the number is accurate, but not because the gap needs to fill. random walks will fill them most of the time. Also it's not useful if you don't put a time limit on it. In 100 years 91.4% of all gaps fill? In 3 weeks 91.4% of gaps fill?
Of course the island could happen and these could still fill at a much later date.
Also, how can you really be sure it's a gap if it's trading around the world, and it only really gaps in our 9-4:30 workday? Like FXE.
Fun fact - there is a gap in ripple somehow, despite the fact that it never rests. Don't worry though, it's been filled!
The Maestro - can I ask for a small clarification / definition of the gap.
Is gap defined as a break of price continuity between CLOSE of day 1 and OPEN of day 2?
OR
E.g. on down trend a break of price continuity between MIN of day 1 and MAX of day 2?
I'm a big fan of yours but I don't believe the study about gaps always filling 19% of the time. I believe the number is accurate, but not because the gap needs to fill. random walks will fill them most of the time. Also it's not useful if you don't put a time limit on it. In 100 years 91.4% of all gaps fill? In 3 weeks 91.4% of gaps fill?
Of course the island could happen and these could still fill at a much later date.
Also, how can you really be sure it's a gap if it's trading around the world, and it only really gaps in our 9-4:30 workday? Like FXE.
Fun fact - there is a gap in ripple somehow, despite the fact that it never rests. Don't worry though, it's been filled!
Yes, time is a factor.
Possible exhaustion gap as well.
The Maestro - can I ask for a small clarification / definition of the gap.
Is gap defined as a break of price continuity between CLOSE of day 1 and OPEN of day 2?
OR
E.g. on down trend a break of price continuity between MIN of day 1 and MAX of day 2?
Both.
Thank you very much. Your answer creates the next question.
If the answer is "BOTH" then what it means that the gap was filled?
For me this one is clear (GAP FILLED):
But now the one below is not so clear (is it classified as gap filled or not):
P.S. Excuse my mspaint art skills ;)
I would consider that a bearish gap fill, yes.