Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Bond Market Panic Continues Towards May Expected Japanese Rate Hike Volatility Spike - 24th April 25
Stock Market Tarrified as President Dump Risks Turning Recession into Stagflationary Depression - 21st April 25
President Dump Delivers BEAR MARKET - Stock Market Battles Between Order and Chaos - 7th April 25
Stocks Bull Market End Game Bear Start Strategy - 20th Mar 25
Gold and System Collapse: Charting the Bank Run of the Mighty US Dollar - 20th Mar 25
Tesla's Troubles — Is it Musk or is it More? - 20th Mar 25
The Stock Market Bear / Crash indicator Window - 9th Mar 25
Big US Tech Stocks Fundamentals - 9th Mar 25
No Winners When The Inflation Balloon Pops - 9th Mar 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Is "Mastering the Gap" the new suckers trap?

InvestorEducation / Learning to Invest May 11, 2012 - 02:17 AM GMT

By: Ron_Jaenisch

InvestorEducation

My email box is full offers for webinars that will teach me to master the gap. Some may provide useful information.

Could buying just because prices have filled the gap be a trap for uneducated investor that generates frustration and losses?


The above example is perfect to make a case for this. Prices gaped up and the day after investors jumped in as prices filled the gap. And then prices went up for a few more days and the upward momentum ran out of steam. All of this was predictable.

Unfortunately some investors’ place their stops just below their purchase and were stopped out after prices came down again. What is unseen to many investors is that when prices moves back down, the down move had a definable distance to go. This resulted in prices coming down again below their stops. This is all part of the ebb and flow of prices.

To the surprise of those who just got stopped out prices then gaped up which generated frustration on the part of the new investors. To make matters worse those that are gap theory enthusiasts probably had buy orders in after the gap past 115, only never to be filled.

The moral of the story is that there is so much more to learn about markets than just "mastering the gap" and perhaps there is a time to use gap theory and a time not to.

Ron Jaenisch, lives in the USA and his email address is RonJaenisch@gmail.com.

His website is www.Andrewscourse.com where the updated Advanced Andrews Course (with manuals and videos) can be ordered as well as a leather bound copy of the hidden cache Andrews techniques.  

© 2012 Copyright RCS   - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in