You might want to buy more shares at $12 to fill the gap. For example, imagine you own shares of Company XYZ and the stock price gaps up from $10 to $12. The dictionary defines a gap fill as “an unfilled space or interval.” When it comes to stocks, a gap fill is the act of buying a stock to fill the void left by a previous price move. Some days have such a low probability of the gap filling that speculators will trade in the direction of the gap.RECOMMENDED: Go here to see my no.1 recommendation for making money online What’s a Gap Fill? Once the probability of "gap fill" on any given day or technical position is established, then the best setups for this trade can be identified. The probability of this happening on any given day is around 70%, depending on the market. A "downgap" would mean today opens at, for example, 1140, and the speculator buys the market at the open expecting the "downgap to close". This means for example that if the S&P 500 closed the day before at 1150 (16:15 EST) and opens today at 1160 (09:30 EST), they will short the market expecting this "upgap" to close. Some market speculators "Fade" the gap on the opening of a market. Normally, noticeable heavy volume accompanies the arrival of exhaustion gap. Keeping an eye on the volume can help to find the clue between measuring gap and exhaustion gap. It is quite possible that confusion between measuring gap and exhaustion gap can cause an investor to position himself incorrectly and to miss significant gains during the last half of a major uptrend. Runaway gaps are not normally filled for a considerable period of time. It can be used to measure roughly how much further ahead a move will go. It is not associated with the congestion area, it is more likely to occur approximately in the middle of rapid advance or decline.
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