RE:RE:RE:RE:RE:RE:RE:RE:RE:Anybody wanting more shares----Pandora wrote: AuntiePenny wrote: Oops! That's the 6-mo chart but just click on the 2-yr and you'll see what I mean.
OK I am now looking at the 2 year chart can you define for me by points on the chart what a gap is? I see the price going up and down over time but what specifically is a referenced gap and was it "filled" and why did it 'have' to be filled?
Actually it's easier to read the 6-mo chart although unlike the 2-yr chart it includes no example of a partially-filled gap.
A gap on a chart occurs when the entire range (hi-lo) of a given trading day is entirely outside the range of the immediately preceding day. There are up-gaps and down-gaps. You see a down-gap about 3/4 of the way into the Dec 17 - Jan 18 period. That gap was 'filled' or 'covered' over the next 7 trading days which ended with a day the range of which touched or fell at least partially within the range of the day preceding the gap.
You see an up-gap in the middle of the Feb-March section, 2 down-gaps in the April-May and an up-gap just after the May demarcation.
Gaps are caused for several reasons but in the case of penny stocks they are usually (but not always) triggered by the release of good or bad news between trading sessions.
Gaps don't have to be completely filled but
eventually the great majority of them are. [But - There is a special gap called a 'breakaway gap' that is filled within a week only 2% of the time and 'continuation gaps' are filled within a week only 4% of the time.] Sometimes gaps are only partially filled and ocassionally they are not filled for years and very ocassionally they are never filled. If you go to the 2-yr chart, right smack in the middle of the Jan-March section you will see an up-gap that has been outstanding for about 17 months and that probably requires some major turnaround in the markets or some seriously bad development in APPL to get filled.
Gaps in penny charts tend to be filled because for a variety of reasons the price range prior to the gap acts like a magnet that draws the price back. This is especially true if the news that sparked the gap grows stale and is not followed up by further news. Often insiders release seemingly good news so that they can dump their shares but this is not likely the case with TLT.
Looking at the daily 5-yr TLT chart you can see that TLT is a very 'gappy' stock given that it isn't a thin trader. I don't know enough about the company to know why this is but there are guys here who would know that.
This is a really bare description of a complex phenomenon but I hope it helps a bit.