Friday, July 31, 2009

What Thursday's Unfilled Gap & Poor Close Might Mean

The late-day selloff may have felt bearish on Thursday. One very simple study I ran last night suggested otherwise...

(click image to enlarge)

The number of instances was a little bit low. These results are strongly suggestive of upside over the next few days, though. The profit factor (gross gains / gross losses) over the first 3 days is especially impressive. Also compelling is the fact that every instance saw at least 1 close above the trigger day close within the next day or two.

1 comment:

Me XMan said...

Do you have a gap up in your formula?