Re: Filling the Gap
in response to
by
posted on
Sep 30, 2010 01:47PM
The gap has been filled and buying pressure has started to move the stock price slowly backup the chart.
I would like to point out (watching the live ticker tape) that this pull back today to fill the gap @ .0066 came at a very high expense to the shorts who threw eveything they had at the longs to try and cap the price around the .0075 area and force a finonacci retacement which could come back to haunt them? if the longs can take the share price higher to the 1 cent level and higher. I wouldn't be surprised to see the shorts launch another attack to try and keep the price below .0075 level. These are the market forces battling it out on the chart for control.
Learning to read the chart will give you a better idea when to buy or add shares to your position. For example, when you see a sharp spike up in share price in one day say from .06 to .10 then some where in the near future the shorts could/maybe force the price back down to fill this gap and I always estamate the pull backs around 50% and I would expect to see a possible pull back to around .08 price and I watch for my entry point of course what the share price is at the time of the pull back is a different story from the asking price because the MMs have to make their cut. I hope this helps a few of you to better understand when to buy, also you can watch the RSI relative strength indicator for a over sold condition to help determine OTHER entry points. I'll try to remember to explain more about RSI later.