Gaps can be some of the most powerful aspect in charting. Many keep their advances heading in the same direction and some will eventually go on to fill it. These opportunities are somewhat common and can offer investors good risk/reward for entry who missed the original move. Below are a few examples merely for educational purposes to demonstrate how profitable these situations can be. Anyone who would like a full copy of Mondays Game Plan please email me at email@example.com.
FB is higher 4 of the last 5 weeks and this week did record a spinning top candle at all time highs which could indicate a softening of the ongoing trend. The stock has gained ground 4 straight times up 1.3, 7.2, 15.5 and 4.6% on 7/28, 4/28, 1/28 and 11/5 (all 3 but the January reaction reversed to CLOSE lower in the daily range). The last 2 occasions however did record bullish gap fills as the 1/27 gap was filled on 2/8 and found some support right at the very round par number. FB did that again as the 4/27 gap is filled on 6/27 with intraday lows of 108.94 and 108.23 respectively. The stock rallied 20 handles to Thursdays intraday highs.