Technical Analysis of Gaps: Identifying Profitable Gaps for Trading [Repost]

The First Complete, Research-Based Guide to Profitable Gap Trading
Gaps represent price jumps that could signal profitable technical trading opportunities. Until now, however, “folklore” about gap trading has been common, but tested research-based knowledge has been virtually nonexistent. In Technical Analysis of Gaps , renowned technical analysis researchers Julie Dahlquist and Richard Bauer change all that. Drawing on 17 years of comprehensive data, they show how to identify “strategic” gaps with high profit potential to trade more successfully.
Building on work that recently earned them the prestigious Charles H. Dow Award for creativity and innovation in technical analysis, Dahlquist and Bauer present specific techniques for analyzing gaps. They address issues such as gap size, volume, and previous price movement; illuminate key findings with easy-to-understand diagrams; and integrate their insights into practical, actionable trading strategies.
• Visualize gaps with candlestick charts
Uncover surprising gap patterns and trading Opportunities
• Measure the profitability of gap-based trades
Gain objective information to assess and select gap trades
• Understand subtle relationships between gaps and price movements
Use both short-term information and longer-term moving averages
• Put it all together in profitable trades
Translate gap research into successful strategies