Posted by mastermind on 14th of Jul 2022 at 12:51 pm
While everything you said may be true, as usual when this
question is asked, it doesn't really answer what is the importance
of gaps being filled. I think that as with Fibonacci retracements
it is more a self-fulfilling prophecy than anything else.
when price gets too close to a gap on the index, it's analogous
to placing too magnets very close together, no matter how strong
you are they will snap together
the gap significance goes hand in hand with those NYSE TICK
spikes (TICK spiking over 1000 to 1500 or below -1000 to -1500).
You tend to get those huge spikes in the NYSE TICK above 1000
or 1500 or the inverse on big gaps and those create important price
and psychological support/resistance areas where a LOT of volume
and TICKS trades - creates important price pivot zones - NYSE TICK
spikes tend to occur in those gaps
speaking of the NYSE TICK here's that 1 min SPX chart - notice
the bounce stalled at the big TICK spike at 3770, which occurred on
the gap from 6/15 at the market open
obviously we had a new NYSE tick generated from the big gap down
when the NYSE spiked to -1900 - again these tend to get generated
on this big gap ups or downs, not always sometimes you get one
intra day but most occur at gaps
While everything you said may
ES futures
Posted by mastermind on 14th of Jul 2022 at 12:51 pm
While everything you said may be true, as usual when this question is asked, it doesn't really answer what is the importance of gaps being filled. I think that as with Fibonacci retracements it is more a self-fulfilling prophecy than anything else.
when price gets too close
Posted by matt on 14th of Jul 2022 at 12:58 pm
when price gets too close to a gap on the index, it's analogous to placing too magnets very close together, no matter how strong you are they will snap together
the gap significance goes hand in hand with those NYSE TICK spikes (TICK spiking over 1000 to 1500 or below -1000 to -1500). You tend to get those huge spikes in the NYSE TICK above 1000 or 1500 or the inverse on big gaps and those create important price and psychological support/resistance areas where a LOT of volume and TICKS trades - creates important price pivot zones - NYSE TICK spikes tend to occur in those gaps
speaking of the NYSE TICK
Posted by matt on 14th of Jul 2022 at 01:09 pm
speaking of the NYSE TICK here's that 1 min SPX chart - notice the bounce stalled at the big TICK spike at 3770, which occurred on the gap from 6/15 at the market open
obviously we had a new NYSE tick generated from the big gap down when the NYSE spiked to -1900 - again these tend to get generated on this big gap ups or downs, not always sometimes you get one intra day but most occur at gaps
And +1000 -1000 tick is
Posted by brophy on 14th of Jul 2022 at 01:23 pm
And +1000 -1000 tick is a great place to take an opposite position if you're short term guy.