GLD fills an "old" gap around bullish pennant-moves higher
I've been learning more about gaps and their importance in price action from Alessio Rastani, Leading Trader. Down gaps especially have the need to eventually go back and fill. During the market crash, Gold displayed massive volatility and formed an inverse head and shoulders pattern through FEB & MAR. A bullish pennant followed in APR & MAY above the inverse h/s. Going back many years it was interesting to find that in FEB of 2013 there was an unfilled "down gap" on the weekly time-frame. About a 1% drop.
Even more intriguing is that the current bullish pennant (broke out and up today) was formed around the 2013 down gap (green arrow points to gap range). Lesson for me is that down gaps matter and often come into play when doing chart detective work to make decisions around putting capital in play while managing risk.
Many thanks to Alessio and the LT team for the ongoing weekly education. Becoming a member was a great decision for my trading endeavors.
GLD
Even more intriguing is that the current bullish pennant (broke out and up today) was formed around the 2013 down gap (green arrow points to gap range). Lesson for me is that down gaps matter and often come into play when doing chart detective work to make decisions around putting capital in play while managing risk.
Many thanks to Alessio and the LT team for the ongoing weekly education. Becoming a member was a great decision for my trading endeavors.
GLD