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Greetings Bill,
We must have different data. I don't understand how either one is
an example of what you are saying nor do I see the analogy to today's
action other than that they all trade below and then move above the
previous day's closing range which is common to many days.
Sorry if I didn't make myself clear.
I can recall no previous instance of an extreme gap opening below
the range of a previous day that successfully breached and held
above the previous day's highs. I think you will find that in such an
instance, the move typically fails in one of three places.
1. Just below yesterday's lows.
2. Just after penetrating yesterday's lows.
3. Just after penetrating yesterday's closing range.
In neither case you present is the open outside the previous day's range.
1/31/2000 I don't have a gap open. However it is an outside day.
4/17/2000 I don't have a gap open. Nor is it an outside day. In fact,
it as an inside day.
dbs
Bill Wynne wrote:
> Actually there have been a few lower opening gaps followed by huge rallies
> recently: 1-31-00 and 4-17-00 are two good examples. I know many on the list
> think he's evil, and I am no fan myself, but old Larry Williams has called a
> similar pattern "oops" for years: gap down open, followed by a rally through
> the opening range or the previous day's close. It's an easy pattern to code
> and test: If open next bar < {whatever} and {whatever} then buy at
> {whatever} stop;
>
> Bill Wynne
>
> Bill@xxxxxxxxxxxxxxx
>
> >From: "david b. stanley" <davestan@xxxxxxxxxx>
> >To: omega-list@xxxxxxxxxx
> >Subject: 3-Headed Dragon
> >Date: Thu, 03 Aug 2000 15:12:51 -0700
> >
> > I cannot recall the SP ever having gapped down 16 pts and
> >then clearing the previous day's high and then holding on to it to
> >boot. And by-the-way, isn't this August? What's up with the 30 pt.
> >ranges?
> >The three-headed Index Dragon appears to have awakened with a
> >vengence never seen before, going from completely inverted to
> >completely polarized.
> > There have been lots of instances of penetrating the previous day's
> >lows
> >and then running out of gas but nothing I recall even remotely like
> >this.
> > I thought it would be an easy short after hitting yesterday's lows.
> >Thank Goodness I never got a sell signal. The follow-thru after 2:30 EDT
> >
> >left me with my lower jaw hangin' as this old dog saw a new trick.
> > Clyde Lee earned his upside breakout the hard way.
> >
> >still in shock,
> >
> >dbs
> >
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