implication of gap

kaly422000

Well-Known Member
#1
i am new to ta .some times before i was interested about gaps created inthe charts.if any scrips create a no of gaps in uptrend or downtrend, wat the implication.there is a notion that price try to catch up gap.
now i put a scrip(videocon industries).
if any one coment how videocon react if another gap in the downside creat. wud it reverse trend.
 
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Capricorn

Well-Known Member
#2
Seems to be professional dumping to me . There will always be bounces but thats that. and only my op. Other views welcome.:)
 
#3
Yes you are right there Kaly,prices try to catch the gaps. but alway keep in mind that these gaps will always prove to be the resistace areas while prices try to catch them. and this resistance area will be nullified if prices are successful at filling this gap.
 

kaly422000

Well-Known Member
#4
add to this three run away gap in the downtrend a must situataton of trend reversal, i have heard. but if this will happen to this scrip( videocon) i dont know but if happen a good chance to enter.
 

kaly422000

Well-Known Member
#6
see the situation right here which some thing i expect. watch videocon. creating three gap in down trend. is it a chance of reversal. i had seen a topic long before about a reversal point but cant remember. foller of this topic pls coment. may be due to technical reason unable to attach the daily chart of videocon. pls see the videocon daily chart
 

Capricorn

Well-Known Member
#7
You mean u didn't catch the down move???:lol:

Why are u trying to predict a reveral??? It never works that way.In xcase of a bounce Expect selling at 225-230.
 

kaly422000

Well-Known Member
#8
i mean three gap in a row in a downtrend a possible case of reversal and it has many proof.i know its a falling knife but some where u sud predict the reversal.
but my topics is a consivutive three gap theory. i heard of this setup. and this videocon chart of daily( pls see the chart) is a classic setup.lets see wat happen. i will take a risk with low of yesterday as stop loss.
 

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