Exhaustion gap or not? Explanation of gaps.

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Derek  19 Oct 2017

Morning,

International:
One get 3 kinds of gaps (windows): Break, Measured & Exhaustion. The first one is easy, but I can never be sure about the next two. The Dow made a gap (window) yesterday, now is that a measured or exhaustion gap? I marked the Break gap on the chart. See gap explanations below.



What is driving the DOW higher? I sorted the shares in the DOW according to what is making new highs. McDonalds is top of the list.



JSE Technical:
I saw a TV program where they talked about the consolodation of Steinhoff. I show this and notice how many times it has touched support. If the court, later this month, rules in their favour about the tax allogations, this share will take off like a rocket. If not ....



Barloworld Is currently against resistance. Can the current rally make it brake resistance?



GAPS (Windows):
There are 3 kind of gaps: Break, Measured & Exhaustion.
Breakaway gaps are the easiest to spot and the most profitable.
Measured gaps occur at approximately the 50% of moves and more difficult to identify.
Exhaustion gaps occurs at the end of a move. If prices reverses to close the gap, you probably have Exhaustion.

You must have a great day.

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