Hogs gapped-up, trade long side

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A gap is a hole in prices which occurs when the current day’s high is below the previous day’s low or when the current days low is above the previous day’s high. Gaps indicate a sudden change of direction and, if left unfilled, can hint toward a major price reversal.  Until filled, the gap serves as a magnet, drawing prices back into the gap, especially when  prices are nearby. If a gap is “filled” by subsequent price action, it tends to lose its predictive power.

Walt Breitinger, Paragon Investments, Inc.
DBA Breitinger & Sons,  Commodity Futures Brokers
800.411.FUTURES (3888)
www.indianafutures.com