Gaps - Rule Book

[10/23, 2:22 PM]: 

Screen always and always wish to give money to rule followers

Rules say :

1. Stock in downtrend

2. Open Gap down

3. It will try to fill the Gap

4. Go short on Gap filled level

HDFC Bank -

Yesterday's Closing - 1998.90

Today Open at - 1973

Gap filled at around 1 pm (1998.90)

High - 1998.90

Now stock is at 1983

Screen badi dayawaan hai

Banana chahti aapko danwaan hai

Suno karo jo woh kehti hai

Dekho kaisey phir aapki pocket yuh khilti hai

[10/24, 12:38 PM]: Yesterday, the rule of gap was discussed with an example of HDFC Bank -

Today, again the same rule worked -

HDFC Bank -

Yesterday's Closing - 1985

Today Open at - 2004

Gap filled at around 10:30 am (1985)

Low - 1982.20

Now stock is at 1997

You need screen to make you rich. Follow it.

Members Contribution

[3:51 PM, 10/25/2018] Gap means

Venkataraman B: A Gap represents the area where no trades takes place. Price charts offen shows Gaps. Generally this occors on between close of the market on day and the next day open.  Gap may be upwards or downwards movement

[3:37 PM, 10/25/2018] Gap means

Chandrashekar: A “GAP” is empty space between one price bar and the next. Gaps occur when price significantly changes from CLOSE of one price bar to the next, with no trading place in the empty space between bars. Gaps occur unexpectedly, that’s why there will not be any trading between the two candles. Generally Gaps will occur when market opens in the morning. It will be like gap up or gap down.

[10:56 AM, 10/25/2018]: Rule Worked

Rahul Sharma: Today hdfc bank followed the same. Opened gap down and filled the gap till yesterday's closing and shorted there now again towards days low .

Exited gain 10 points easily GAP RULE

[11:27 AM, 10/25/2018] Rule Worked

Dheeraj Magdum: Same trade. Sunpharma closed gap. Shorted at 71 booked profit at 62.5

[10/25, 9:36 PM]

Parag Soni: Sun Pharma last closed 570.70
Open 565 then fill gap at 570.
Made high of 572. But if we notice there is a reversal candle at 15 min time frame. So shorting with day's high

For Target we use ATR
Daily ATR of Sun Pharma (21)

Now look at today's action

OPEN 565
THEN 572 (565-572=-8)
NoW ATR (21-8=13) FOR DOWN SIDE

LOOK AT LOW (565-13=552)

[1:55 PM, 10/25/2018] Rule Worked

Aditya Jha: Indusind bank today on 5 min chart first it tried to fill the gap of yesterday then it recovered and filled todays gap down opening....am i correct mam

[3:09 PM, 10/25/2018]: Indusind gone

[3:49 PM, 10/25/2018] Twist in the Rule

Swapnil Wadkar: Daily initiative : Today's Term "GAP" : Subtype "Novice GAP" :- Novice gap is a gap which occur when a stock/scrip is in trend {up or down} and open with a gap on the side of trend {Gap up for Uptrend Stock and Gap down for down trend stock} In the above chart, the stock had 2 support level which were below the yesterday's  closing price... Today it opened on the 2 nd support zone.. which made the above support zone to turn to resistance and hence the prices start to fall from that resistance level.    

%Learning%: In such case we should plan a 50-50 approach on trading., Mean we should take a 50% position at the resistance level and another 50%when the gap is filled generating a limited risk but more profit.

[11:30 AM, 10/25/2018]: How our group member saved from losses because of Gap Rule

NF me Galti se Gap theory opposite laga di. Jab tak yaad aaya, loss me tha.. booked immediately and saved money. Only 1k loss. Nahi to 5 6k ho jata..🙈

[10/26, 4:01 PM]: Rule Book - *Gap* -

What we learned?

Stock in downtrend, if there is a gap (gap down opening) - it will try to fill the gap and start moving downwards and vice versa

Now, many of the rules conflict with each other. For example,

1) Stock in downtrend
2) Opened gap down at support levels and price continue to fall
3) After a while tried filling the gap (Our thought process currently is it will continue downtrend)
4) However, in reality price is increasing
5) Such candle can be named as Hammer, Piercing line, Bullish Engulfing, etc
6) Stoploss come handy in such cases

This is the reason we keep hearing there is no surity but a probability in stock markets. The one who become 100% sure or believes he is always 100% right, is the one who will stop progressing further.

Bottom line is if you find 70% of the times rules are working, you should be pleased. It probably means you’ve sharpened your technique and there is a room to grow. If you find 100% of them working 100% of times, you should worry. It probably means your technique is muddled.

Spend your weekend to read more and more articles on gaps and share with us the best study material you find on theory gaps.

[10/31, 2:23 PM] Suyog Shanbhag:

[11/1, 9:43 AM] Swapnil Wadkar EqTech-1259: Gap filled short as rule says

[10/31, 7:54 PM] Ganesh Baser EqTech-1422: Bharat forge filling gap to 602…?
[10/31, 7:57 PM] Ganesh Baser EqTech-1422: Seems Morning star formation too

[11/2, 9:46 AM] Ganesh Baser EqTech-1422: Gap filled

[1
[11/3, 12:48 AM] Ganesh Baser EqTech-1422: Tata Motors have the gap between 206.3 to 208.50