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Dear all,
I fail to see how a Measuring Gap is created in this Bull Trend
The low of Bar #4 falls below the High of Bar #1 (BO point), therefore closing the Gap before the creation of Bar #5 and therefore, in my opinion, rendering the Gap between BO and low of Bar #5 void. What is wrong in my reasoning?
Also Al says: the low of this Bar #4 (Al is pointing at it) is at or above that high (meaning Bar #1):
- shouldn't it be that close (close of Bar #1)?
- could this be the reason why Al says there is an open Gap?
- Bar #2 closes above the close of Bar #1 and therefore the low of Bar #4 overlaps with its close, is this not reason for rendering again the Gap closed, provided we measure low of PB with close of BO points?
It is a subtle thing that is nonetheles having a big impact in me properly understanding Measuring Gaps, since this pattern is not uncommon.
Thanks a lot in advance!
Antonio
Hi Antonio,
Check out the additional illustrations on what Measured Move Gaps might look. I could be wrong.
Its a negative gap / Body Gap, so you could see it as a regular gap at a higher tf
Hi Mike, many thanks. I had not seen those:
- the BCD Gap closes with the pair of Bear/Bull Bars that pierce the Gap line and after the second test of the BO the Bull Trend loses strenght, if I understood properly. Nevertheless it then rallies, it looks more like a DB + DT TR followed by a Bull BO with a MM
- the GHF Gap stays open and the MM is impecable
But I still fail to see how Bar#4 does not invalidate (close) the Measuring Gap
Best
That is a food for thought, thanks, Ben
