Hey SpecG, I have been enjoying your posts and you were one of...

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rahonui

483 Posts.

09/06/16

20:45

Post #: 18000386
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Originally posted by specgoldbug ↑

Hi Moto, thanks....it's still logical....all these gaps created now by big and small investors/traders/perhaps institutions who knows.....

I am more for fundamentals and just learning some technical...but here is some follow on...there isn't much stock here, there is news-flow, more results pending, MD presenting at AMEC....it's the reason why I didn't mind buying a few more today

Breakaway Gaps

Breakaway gaps are the exciting ones. They occur when the price action is breaking out of their trading range or congestion area

Don't fall into the trap of thinking this type of gap, if associated with good volume, will be filled soon. It might take a long time. Go with the fact that a new trend in the direction of the stock has taken place, and trade accordingly.

Runaway Gaps

Runaway gaps are also called measuring gaps, and are best described as gaps that are caused by increased interest in the stock. For runaway gaps to the upside, it usually represents traders who did not get in during the initial move of the up trend and while waiting for a retracement in price, decided it was not going to happen. Increased buying interest happens all of a sudden, and the price gaps above the previous day's close. This type of runaway gap represents an almost panic state in traders. Also, a good uptrend can have runaway gaps caused by significant news events that cause new interest in the stock.

Conclusion

There is an old saying that the market abhors a vacuum and all gaps will be filled. While this may have some merit for common and exhaustion gaps, holding positions waiting for breakout or runaway gaps to be filled can be devastating to your portfolio. Likewise, waiting to get on-board a trend by waiting for prices to fill a gap can cause you to miss the big move.

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Hey SpecG,

I have been enjoying your posts and you were one of the first investors to cotton on to MGV's potential - I felt like I was posting to myself and some of the long suffering long-term holders for a while there.

I found these guys because I was holding SLR, how did you come across them?

MGV Price at posting: 8.4¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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Add MGV (ASX) to my watchlist

Hey SpecG, I have been enjoying your posts and you were one of...

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History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

Chris Judd's Talk Ya Book: Orthocell building on 'enormous potential' with steady growth - and US push to come

Breaking news: New opportunities for investors & companies - HotCopper opens to capital raising!

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