Today we’re talking about gap fills and if you don’t already know, gaps are the areas on a chart where the price of the stock moves aggressively up or down with little or no trading in between.
Most of the time, gaps occur during positive or negative news or when an event causes a flood of buyers and sellers.
For instance, if a company’s earnings are much higher than expected… then the normal price pattern of the stock may gap up the next day. This means that you’ll see an enormous group of buyers lifting the share price higher.
We’ve been following these gap fills since the sell off last quarter and in today’s video, I’m going to walk you through two more of them on FireEye (FEYE) and Amazon (AMZN).
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