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Chart Lesson: 5
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The markets leave gaps when prices open at a higher price than the high for the
previous day, or lower than the previous low, then fail to trade in that area
all day (or week). Gaps can be either common measuring (used to project the next
leg of the move), or exhaustion. Those marked 2 & 3 are measuring gaps. Number
5 and 7 are exhaustion gaps. The key rule to remember is that GAPS ARE MEANT TO BE FILLED.
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