RCL has come down and filled a gap it left behind previously..
Support can often be found at the top of at the bottom of a gap.
Windows as they are called in Japanese Candlestick Charting, or Gaps, as they are called in the west, are an important concept in technical analysis.
Whenever, there is an open gap that means that no price and no volume transacted hands between the gap. Resistance: Once price gaps downward, the gap can act as resistance. Support: When prices gap upwards, the gap can act as support to prices in the future. When a gap has started filling, it will rarely stop due to there often being no immediate support or resistance.
Gaps are like a vacuum on the price chart. Most large gaps will be filled within a year. The average time for a gap to be filled in the stock market is 3 months.
Not a recommendation
Support can often be found at the top of at the bottom of a gap.
Windows as they are called in Japanese Candlestick Charting, or Gaps, as they are called in the west, are an important concept in technical analysis.
Whenever, there is an open gap that means that no price and no volume transacted hands between the gap. Resistance: Once price gaps downward, the gap can act as resistance. Support: When prices gap upwards, the gap can act as support to prices in the future. When a gap has started filling, it will rarely stop due to there often being no immediate support or resistance.
Gaps are like a vacuum on the price chart. Most large gaps will be filled within a year. The average time for a gap to be filled in the stock market is 3 months.
Not a recommendation
Comment:
Also it depends on the gap type..an exhaustion gap is often filled very quickly and a break-away gap is filled slowly, and in some cases, not for a very long time, but you can't really ever say Never (o: