Is there a relationship betweeen gaps and earnings?

Discussion in 'Technical Analysis' started by cashmoney69, Oct 20, 2006.

  1. I've been trading gaps recently and wondered if there is a mathematical relationship between a companies' earnings report and the gap it produces.

    Today LOGI is up 3.16, but there earnings were only .05 cents higher than expected.

    Is there a way of accurately predicting the size of a gap before it happens?

  2. The opening is based on the interaction of all of the new and open orders in the book. The actual earnings release compared to the expected earnings is almost irrelevant.