gaps

I have been doing some visual backtesting with xtick and I noticed that almost without fail ,gaps are always filled.
Does anyone know if there is a way to set alerts for gaps in any software programs. Thanks

what do u mean gaps are always filled? i don't get it

Explanation of gaps:

http://www.stockcharts.com/education...rategies1.html

This works much better in stock market than in forex, as far as I know gaps in forex tend to be very small and the spread would most likely eat up your profit. Out of curiosity I followed daily gaps of a few stocks for a while and they really do get closed most of the time.

Hope this helps,

Dane

Well I have to say that I have been looking for gaps lately in my visual backtesting with xtick and while you are right they do not happen often, when I see a gap it gets filled 90% of the time and sometimes the movement continues down (or up) quite a few pips after the gap before it turns back to fill the gap so there seems to be lots of pips to be had .
As I said before I wish there was a program that would notify a person when a gap has happened .I know that there is something to this.

when there's a gap higher than the previous bar, 90% of the time it will come back down to fill in the gap zone?

the only time I see a gap is the beginning of the week on Sunday where price movement occurred before it is recorded on the chart. I wouldn't want to go against the trend just because I see a gap over the weekend on the daily chart...