Hubert Senters here.
In the last video, we’ve talked about the importance of being able to figure out if something is in a uptrend or a downtrend or sideways consolidation. And now that we found that the Nasdaq is in a massive uptrend going higher then we can make the logical deduction or the logical guess that things are going to gap up more often and they’re less likely to fill that gaps.
So then when we compare that over here to an intraday chart over at the Nasdaq at NQ.D. And then I can see right here I’ve looked at this chart this morning. So let me give a quick look too and so in this situation this gap up filled. It makes sense. And also we have a tendency to gap up and go so a gap and go and gap and crap.
A gap and crap it just means it’s going to fill the gap so let’s take a look at its personality. So here is a gap and go. Let me back up in time. I want to change this chart to about 15 minute timeframe because I will just make it better for me.
Let’s go 5 so we can see smaller gaps. A gap fill the gap went higher. Gap up continued higher. Gap down went higher. Gap up fill the gap went higher. Gap down and believe it or not still close higher. And then there was a down day back here. I think it was. Let me go back a few more days. There we go. Let’s go find that day right there. This one gap up. Fill the gap. It went a little bit lower.
So the same thing it will hold true for stocks so if you look at something like. Let’s take a look at like this a Starbucks, SBUX. Starbucks is going to gap up and go away from you. It’s going to open and go away from you. It’s going to gap up and go away from you. It will sometimes also gap down and go away from you. But overall if you’re in a major uptrend in the market then the gaps are going to tend to do this. They’re going to tend to gap up and run up without you. They’re less likely to gap down and runaway from you.
Although it will happen from time to time. So if you’re in a major uptrend if you get a gap down you want to buy that because it’s probably going to fill the gap. If you get a gap up it’s probably going to go higher. If you get a gap up it could potentially back fill and then go higher.
Same thing if you’ve got a downward moving market gaps to the down side or more likely to breakaway from you as opposed to going the opposite direction so just keep that in the back of your mind.
Silas Peters is going to be doing a special webinar on Price Actions Secrets To Follow The Big Money Footprints. They’ve got one that’s happening right now at noon while I’m recording this video. After the one that happens at noon today they’ll update that and it will be the right date.
So it’s July 27th Tuesday at 2PM EST. In order to register for the webinar all you got to do is click this button right here that says CLICK HERE TO REGISTER.
Little pop up is going to get you. It needs your first name. It needs your primary email address. It needs your cellphone. So we can either voice call you or text and go hey, webinar is starting 15 minutes.
Good luck. Hope it helps. See you on the next video.
Hubert.
