(1) General gaps will be filled. Because the gap is a vacuum zone without trading, it reflects the impulsive behavior of investors at that time. When the investment sentiment calmed down, investors over-reflected on their past behavior, so the gap was made up. In fact, not all types of gaps will be filled, including breakthrough gaps, and persistent gaps will not necessarily be filled, nor will they be filled immediately; Only consumable gap and ordinary gap can be filled in a short time, so whether the gap is filled is not helpful for analysts to observe the market outlook.

(2) Will the breakthrough gap be filled immediately after it appears? We can observe it from the change of volume. If there are a large number of transactions before the breakthrough gap appears, but the transactions are relatively reduced after the gap appears, then the probability of filling the gap immediately is only 50-50%; However, if the number of transactions increases greatly after the gap is formed, and the stock price keeps a very large number of transactions when it continues to stay away from the pattern, then the possibility of filling the gap in the short term will be very low. Even after pumping, it will be outside the gap.

(3) When the stock price breaks through its region, it rises rapidly, and the initial trading volume is large, and then it decreases continuously during the rising. When the stock price stopped its original trend, the turnover increased rapidly, which was the result of fierce struggle between the two sides. After one of them won an overwhelming victory, a huge gap was formed, and then it began to decrease. This is the volume change when the persistent gap is formed.

(4) Consumable gaps are usually the day when gaps are formed, with the highest trading volume (but it may also appear on the day after the highest trading volume), and then the trading volume decreases, indicating that the market purchasing power (or hard work) has been exhausted, so the stock price will soon fall back (or rebound).

(5) In a rising or falling process, the more gaps appear, the faster the trend ends. For example, when there is a third gap in the market, it implies that the market is coming to an end; When the fourth gap appears, the possibility of short-term decline is even greater.

Extended data

Gap is a powerful basis for judging the trend.

(1) Form of notch:

(a) General gap-it is not helpful for trend prediction and can be ignored. Because it is produced when the volume is small or the amplitude is narrow.

(b) Breaking the gap-generally occurs when the trading volume is large, or when important prices are broken or new big fluctuations begin. When the exchange rate gap is large and far from the original price, it shows that its real breakthrough has begun, so the bigger the gap, the more intense the future fluctuations will be.

(c) Persistent gap-it has appeared for more than two consecutive times, reflecting the smooth development of the market and moderate trading volume. In the upward (or downward) trend, these gaps will become the support (resistance) areas in the future market adjustment. Because this gap group generally appears in the middle of the whole trend, we can trade with the law that the future increase (or decrease) will double in this increase (or decrease) direction.

(d) Consumable gap-also known as slack gap-generally appears at the end of the trend, which is a sharp rise (or decline), so there will be an inflection point in the subsequent market. Gaps often appear after (a) and (b), and when they are filled, the trend will decline. At this time, we should take active measures to avoid losses.

(2) Application rules:

(1) Consumable gap and ordinary gap may be filled in a short time, while breakthrough gap and persistent gap may not be filled, so it is more meaningful to analyze breakthrough gap and persistent gap.

(2) Whether the breakthrough gap will be filled up immediately after it appears can be judged from the change of transaction volume: before the breakthrough gap is formed, if the transaction volume is large, but it decreases after it is formed, the chance of filling up the gap quickly is only half; After the breakthrough gap is formed, if the turnover is large and continuous, the possibility of filling the gap in a short time will be reduced.

(3) Consumable gaps are generally accompanied by the largest trading volume (or the next day). However, when the trading volume decreases, it shows that the trading power of the market (multi-investment or airdrop) has been fully released and began to decline, and the price may fluctuate in the opposite direction at this time.

(d) In the process of rising or falling, the more gaps appear, the more the trend is coming to an end. At this point, investors should be cautious in trading.

The problems that should be paid attention to in the application of morphology are discussed.

Morphological analysis is an early and mature method. However, there is also the problem of correct use. On the one hand, from different angles, the same form may have different interpretations. In a sense, it is possible to miss the opportunity. In addition, morphological theory, like other technical methods, can not be regarded as a universal tool, let alone as a golden rule. The conclusion of morphological analysis can only serve as a reference for your operation.

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Baidu Encyclopedia-Gap Gap