PRICE GAPS
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"Price gaps
are filled" is a good rule of thumb when
looking at a price chart.
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Gaps in price are a common occurrence
on a price chart.
A price gap occurs on a
price chart when there is a gap between yesterdays high
and today's low.
Price charts tend to flow in a
line, unless there is some unusual volatility. Then you
see a gap in price.
Since price charts tend to flow
smoothly, gaps tend to get filled quickly, as a general
rule. If the volatility becomes high, gaps could be
filled later on after the run is over.
It takes experience watching the
commodity future and using other indicators to use price
gaps effectively, unless you have a large account.
Even then you could make a
mistake. So be careful using price gaps an an indicator
until you know the commodity well.
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