Do Gaps Always Get Filled

Discussion in 'Trading' started by Investorsources, Dec 6, 2005.

  1. From experience, do you find that Gaps almost always get filled at some point. Who cares if there is a gap to be filled.....what does it imply other than there is such a strong bevy of buyers or sellers so as to cause the gap? What is the significance of having to fill a gap? Is it just a self fullfilling prophecy or is there some technical reason for it to be filled.
  2. scrap


    In my experience yes. It may take some time but it seems like the market hates them.
  3. NO

    watch the nikkei, lots of unfilled gaps.

    "gap filling" could be just noise, like how many times the S&P crosses the 1260 level.... a lot.....

    I read somewhere pit traders like to fill gaps to screw retail traders piling on at the opening, but I don't believe anyone can push markets more than 3-4 S&P points.

    i don't watch gaps at all
  4. scrap


    I'm not sure about pit traders but I was a market maker for awhile and we used to try and close out every gap we could when the situation presented itself.
  5. Cheese


    Do Gaps Always Get Filled
    If you just want to say at some point it will get filled .. what is the point?

    Investorsources, I'd say do your own very detailed study on gaps because it is not as it seems. When a gap gets to a bigger size then taken together with certain supporting parameters it points to a strong move, either first leg or main leg of the market going further in the direction of the gap (+ gap mkt going up & - gap mkt going down).

    Give it study.
  6. scrap



    You are right that you have to define a time frame. I guess I should have clarified that. But in my experience a gap will get filled at some point. It may take days, months, etc... but I can't remember one off the top of my head that wasn't. Of course that's just my opinion.

  7. COMPX/NDX have 5 unfilled gap ups from 10/28 = lesson over
  8. scrap


    What's to say that once this year ends and this rally starts to fizzle that they won't?
  9. Exactly
  10. When did you go short? After the first, second , third, fifth gap?
    Are you short now?
    #10     Dec 6, 2005