Corn is flying higher

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A gap is a hole in prices which occurs when the current day’s high is below the previous day’s low or when the current days low is above the previous day’s high. Gaps indicate a sudden change of direction and, if left unfilled, can hint toward a major price reversal.  Until filled, the gap serves as a magnet, drawing prices back into the gap, especially when  prices are nearby. If a gap is “filled” by subsequent price action, it tends to lose its predictive power.

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The risk of loss in trading futures and options on futures can be substantial. The author does not guarantee the accuracy of the above information, although it is believed that the sources are reliable and the information accurate. The author assumes no liability or responsibility for direct or indirect, special, consequential or incidental damages or for any other damages relating or arising out of any action taken as a result of any information or advice contained in this commentary. The author disclaims any express or implied liability or responsibility for any action taken, which is solely at the liability and responsibility of the user. In addition, the author of this piece currently trades for his own account and may have financial interest in the following derivative products: (corn, soybeans, soybean meal, soybean oil, lean hogs, live cattle, feeder cattle).

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