From John J Murphy’s classic, “Technical Analysis of the...

From John J Murphy’s classic, “Technical Analysis of the Financial Markets”, p. 94:


QUOTE:

Upside gaps are a sign of market strength…

Several myths exist concerning the interpretation of gaps. One of the maxims often heard is that “gaps are always filled”. This is simply not true. Some should be filled and others shouldn’t…

The breakaway gap:

The breakaway gap usually occurs at the completion of an important price pattern, and usually signals the beginning of a significant market move. After a market has completed a major basing pattern, the breaking of resistance often occurs on a breakaway gap…

Breakaway gaps usually occur on heavy volume. More often than not, breakaway gaps are not filled.

UNQUOTE



In which case ADL today appears to be a textbook breakaway gap.