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PRICE GAPS

 


"Price gaps are filled" is a good rule of thumb when looking at a price chart.


 

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.

 

 

Chart Courtesy Of Commodity Price Charts

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