Gaps: Trading gaps.

FGEN: Gap acting as support. Gap is not filled.





PNX: Fade the gap. Gap filled.



MPI: Filling the gap.



SMC: Gap down. Fade the gap(?)



This post only shows how gaps act. Some doesn't get filled and act as support(FGEN). Some are filled a few weeks after building a base(PNX) while some gaps don't get filled outright. Sometimes, it takes a gap a really long time to get filled(MPI).

That being said, no one can really say how the gap in SMC would act. One thing is certain though, act when the opportunity says so. Not because a blogger says so or forum members say so but when your trading system says so.

Theory says that all gaps are filled, sooner or later. They say it's nature's way of things. :))
Once the gap is filled, price action resumes the direction of the gap.


*So if FGEN trades beyond 21 and the entire market crashes back, look to buy at 10.40-10.70 :)) (Just kidding).

Reversal Candidates

JGS gave a trending buy signal for today.
MPI about to give a trending buy signal. Signal is confirmed only on actual crossover.

*Did not put up a position in JGS. Waiting for a higher trough to form before getting in.
*Will not put up a position in MPI. Potential short/long term upside is the lowest among the selection.

Not a recommendation to buy.

Metro Pacific Investment Corp (MPI)

This is how it looked like after a week:



10% in a week - not bad for a short term trade!

Apply a trailing stop for those who want more!

MPI (Metro Pacific Investment Corp)

I can't believe that I missed this!



1. Buy signal on MACD
2. Support found and tested (the dragonfly candle and red hammer)
3. RSI bullish divergence
4. Price closing above 10EMA.

4 is definitely going to be tested again.