Question: Gaps

Catterpie90

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Hi everyone,

I am learning technical analysis and would like to ask about Gaps.

I'm currently trading the Philippine stock market and my resources are all books that tackle the US or EU stock market. Here in the Philippine stockmarket, they are wary about "filling the gap". This means that when a stock gaps up, lets say jumps from 10 per share to 11 per share (creating a gap in between), there would come a time that the stock would go down to the gap between 10 to 11 thus filling the gap.

I asked this because

1) If "filling the gap" is indeed always happening then breakaway gaps are more of a bearish omen rather than a bullish one.

2) How do you know if its a breakaway gap or an exhaustion gap?

3) What does gap tell you in your market?


Sorry for the long post and thanks in advance :)
 
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