RE:RE:Gaps This is just an opinion but chasing trend lines, beta and whatever other metrics is an attempt to time the market, something literally everyone agrees is impossible to do but it doesn't seem to stop people from trying. The most important rule in statistics is you never try to pull meaning from a pile of data because you can prove just about anything you want to. Data is only useful for proving/disproving a theory which is not what's happening when you're analyzing gaps.
The reason stocks move up or down over the long term is nothing more than supply and demand. Over the short term there is all sorts of manipulation that is really not reflective of the value of the company.
Could it go down further? Absolutely. If the majority of people are long the other 10% can bat the price up or down 50% without trying too hard. People who chase price movement will statistically on average underperform the market.
I'll keep saying it. If the technology can't do what they've said it can the stock goes to a penny, if the technology works the stock is going to the moon. Just gotta wait a few more weeks to find out!
Renofund wrote:
2010dodge wrote: Crapot is always preaching about the gap at .27, so I googled it and he will be right 90% of the time
which is a pretty good chance it will be filled.
So what's that mean: when a stock price gap is observed, by a chance of 91.4% it will get filled in the future. In layman's word, 9 in 10 gaps get filled; not always, but pretty close.
just to make it more interesting .... not all gaps are the same, which they didnt mention. It depends on the gap and reason for gap.