GAPS-support resistance trading

[jamesj188]

What around a gap is supp or resistance??? Take a look at this chart below quickly (ieo-apr 2011)

Would you consider solid resistance at 1 & 2.....or just 1...or just 2.... or neither????
What do you guys think?

 

[Joey25]

What around a gap is supp or resistance??? Take a look at this chart below quickly (ieo-apr 2011)

Would you consider solid resistance at 1 & 2.....or just 1...or just 2.... or neither????
What do you guys think?

The whole of the area between 1 and 2 represents an area of fear for buyers, so a short limit entry somewhere in that gap could be appropriate.

Then, to pinpoint the placement, if you can get access to volume figures last time price actually traded in that gap, the peak of the volume distribution could be good placement.

 

[jamesj188]

ok, thanks but is price precisely at 1... or 2... or both = resistance? thats what I would like to know.

 

[enragedcow]

ok, thanks but is price precisely at 1... or 2... or both = resistance? thats what I would like to know.

doesn't work like that

support and resistance are "areas" not concrete prices

so in your chart anywhere between 1 and 2 is the resistance, if price breaks through then it's support