Wednesday, September 18, 2013

An Unfilled Up Gap / Inside Day Pattern

Today’s movement will largely be due to the market’s reaction to the Fed.  But I thought I would share a study that triggered yesterday that would perhaps have a bit more influence on a non-news day.  It looks at days like Tuesday where the market gaps higher, never fills, and moves higher from open to close without making a higher high.


Implications here appear somewhat bearish, with most of the damage occurring on day 1.  Traders may want to keep this pattern in mind for the future.

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