Chart Abbreviations:

3BC: 3 Black Crows; 3WS: 3 White Soldiers; BeC: Bear Channel; BeE: Bearish Engulfing; BTC: Buy To Close; BTO: Buy To Open; BuC: Bull Channel; BuE: Bullish Engulfing; DCC: Dark Cloud Cover; EnP: Entry Point; ExP: Exit Point; FW: Falling Wedge; HL: Higher Low; HH: Higher High; HM: Hanging Man; IR: Island Reversal; LBB: Lower Bollinger Band; LL: Lower Low; LH: Lower High; LPP: Lock Profit Point; MBB: Middle Bollinger Band; NABOP: Not A Bottom Out Pattern; NATOP: Not A Top Out Pattern; R: Resistance Line; RW: Rising Wedge; S: Support Line; SLO: Stop limit Order; SMO: Stop Market Order; STC: Sell To Close; STO: Sell To Open; T: Target; TSO: Trailing Stop Order; UBB: upper Bollinger Band;

Saturday, October 10, 2009

Indices Weekend Review 2009-10-05 to 2009-10-09: Talking about gaps

A very interest weekly action in past week, Here is what happened on major indices:

COMPQ Daily chart, opened 2 new gaps on chart in one week, this give COMPQ total 8 unfilled gaps since the run from 1265.52.

DJI bounced off at line S last Friday, and continued matching higher, and closed at the highest level since March low. Another extended rising wedge formed, B & S3. Friday close at no nearby resistance or support zone, Resistance at B, support at S3. DIA had 2 new gaps added to the chart this week!

SPX, this one also closed near atime high since March low, but failed to cross line S3, so, this is still the one doing a back test action after rising wedge E'/S3 broke down. So far, 3 gaps open since Jul low, total 4 gaps open since March low up.

$RUT now have 5 gaps open on daily chart, and the 2 was added in past week.

What are the gaps means to the future action on stocks and indices? Here are some readings:

Gartley's Gap Theory Explained

Gap Trading Strategies

E-mini and the Price Gap Theory

Gaps in Japanese Candlestick charts viewpoint

Gaps and Gap Analysis



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