Index

Symbols

9/11, gaps, 49

A

abandoned baby bottom, 39

abandoned baby top, 37

Active Trader, 219

AIG, price movements, 114-116

annualized returns, 76

Apple

exhaustion gaps, 6

extreme value, 89, 92-94

runaway gaps, 4

AT&T, breakaway gaps, 4

Atmos Energy Corporation, closing gaps, 214

averages, moving averages

calculating, 140-144

categorizing, 144

down gaps, 147

gaps, 149-157

up gaps, 144

Avon Products, 50

B

Beta, 80

BioSante Pharma Inc., 50

black candles, 222

Black-Down-Black pattern, 112

Black-Down-White pattern, 112

Black-Up-Black pattern, 112

Black-Up-White, 109

breakaway gaps, 4

Bulkowski, Thomas, 40

C

calculating

moving averages, 140-144

returns, 71-76

candlestick charting, basics of, 19-20

closing the window, 20

candlestick charts, 17

windows as support and resistance, 20, 23-25

candlestick patterns, 26

abandoned baby bottom, 39

abandoned baby top, 37

collapsing doji star, 34

color, 107

downward gap tasuki, 27

gapping doji, 32

gapping side-by-side white lines, 30-31

tasuki, 27, 29

two black gapping candles, 32

upward gapping tasuki, 27

categorizing moving averages, 144

Central Gold Trust, trading on high gap days, 181

Cheniere Energy Inc., 101

Chrysler, 166

Cincinnati Financial Corp, 124

Clark, Frank Howard, 78

Clearwire Corporation, 94-98

closing

gaps, 217

timing of, 206-207, 211, 214

windows, candlestick charting, 20

Coffee Holding Company, 193

collapsing doji star, 34

common gaps, 8

companies

AIG, price movements, 114-116

Apple

exhaustion gaps, 6

extreme value, 89, 92-94

runaway gaps, 4

AT&T, breakaway gaps, 4

Atmos Energy Corporation, closing gaps, 214

Avon Products, 50

BioSante Pharma Inc., 50

Central Gold Trust, trading on high gap days, 181

Cheniere Energy Inc., 101

Chrysler, 166

Cincinnati Financial Corp, 124

Clearwire Corporation, 94-98

Coffee Holding Company, 193

Crocs Inc., closing gaps, 210

Darden Restaurant, 185, 187, 190

Electronic Arts, 64

Endeavour Silver Corporation, 191

Equity One, 193

Ericsson, collapsing doji star, 35

Exelis Inc, 191

Finisar Corporation, 191

Frontier Communication, 185

GlaxoSmithKline, 59

GM, 166

Goodrich Corporation, 182, 184

Hasbro, 37-38

Herbalife (HLF), 125

Hot Topic, Inc., 211

Human Genome Sciences Inc., 59

IBM

gaps, 65

volume, 122

ITT Corporation, 191

Jack in the Box, closing gaps, 214

Jammin Java Corporation, price movements, 116-118

Johnson & Johnson, candlestick charts, 17

Krispy Kreme donuts, 25-26

Lehman Brothers Holding Company, 59

McDonald’s, opening gaps, 8

Merck, volume and gaps, 128

MineFinders Corporation, 191

Monsanto, closing gaps, 211

Netlist Inc., 149

moving averages, 151-152

Newmont Mining Corporation, 191

News Corp Ltd., 63

Novagold Resources, 185, 187-188

Omnicare, 193

Optimer Pharmaceutical, Inc., 103

Pearson, downward gap tasuki, 27

Premium Data, 43, 65

RBS, 34-36

Resmed Inc., extreme values, 89

Royal Gold Inc., 191

Seagate Technology PLC, 64

Silver Wheaton Corporation, 191

Taro Pharmaceutical, 50

Temple Inland, 192

TravelZoo, 61

Unisys Corp., extreme values, 89

Universal Display Corporation, 98-101

Wal-Mart, 61

Xylem Inc., 191

company-specific events, gaps, 50

continuation approach, 173

continuation strategies, gaps, 13

Cramer, Jim, 166

Crocs Inc., closing gaps, 210

D

daily returns, 76

Darden Restaurant, 185, 190

data, 43-45

Day 0, 10

Day –1, 10

Day 1, 10

disjointed candles, 17

down gaps, 221

moving averages, 147

volume and, 125, 129

downgap side-by-side white lines, 30

E

Elder Force Index, 122

elections, gaps, 49

Electronic Arts, 64

Endeavour Silver Corporation, 191

Equity One, 193

Ericsson, collapsing doji star, 35

ex-dividend gaps, 8

Exelis Inc, 191

exhaustion gaps, 6

extreme values, 89, 93-94

F

falling windows, 19

Finisar Corporation, 191

frequency of gaps, 46-50, 54

Frontier Communication, 185

G

gap day candle color, 108-109

gap down, 3

gap trading, market movements, 194-202

gap up, 3

gapping doji, 32

gapping side-by-side white lines, 30-31

gaps, 1, 4, 10, 122

9/11, 49

breakaway gaps, 4

by industry, 65-66

closing, 205

timing of, 206-207, 211, 214

common gaps, 8

company-specific events, 50

continuation strategies, 13

down gaps, 221

elections, 49

ex-dividend gaps, 8

exhaustion gaps, 6

frequency of, 46-47, 49-50, 54

future of, 220

gap day candle color, 108-109

high gap days, 159-160, 163, 171-174, 224

news summaries, 165-171

trading, 174-176, 179-182, 185-187, 191-195

index membership, 61-63

liquidity, 45-46

measuring gaps, 4

moving averages, 149-157

opening gaps, 8-10

previous day candle color, 109, 112-114

representing, 10

reversal strategies, 13

runaway gaps, 4-6

size of, 56-61

suspension gaps, 8

trading, 13-14

up gaps, 88, 221, 223

volume and, 124-125, 128-129

down gaps, 125, 129

measuring, 135

up gaps, 131-132, 136

Gartley, H. M., 121

GlaxoSmithKline, 59

GM, 166

Goodrich Corporation, 182, 184

Granville, Joseph, 122

H

Hasbro, 37-38

Herbalife (HLF), 125

high gap days, 159-160, 163, 171-174, 224

news summaries, 165-171

trading, 174-176, 179-182, 185-187, 191-195

Hot Topic, Inc., 211

Human Genome Sciences Inc., 59

Huntington Bancshares, gaps, 1

I

IBM

gaps, 65

volume, 122

index membership, gaps, 61-63

industry, gaps, 65-66

ITT Corporation, 191

J–K

Jack in the Box, closing gaps, 214

Jammin Java Corporation, price movements, 116-118

Japanese candlestick charts, 17

Johnson & Johnson, candlestick charts, 17

Kristy Kreme Donuts, 25-26

L

Lehman Brothers Holding Company, 59

liquidity, gaps, 45-46

luck, 77-79

M

market-adjusted returns, 82-89

market caps, 61

market movements, gap trading, 194-202

markets, high gap days, 159-160, 163, 171-174

news summaries, 165-171

trading, 174-176, 179-182, 185-187, 191-195

Markowitz, Harry, 80

Marley, Rohan, 116

McDonald’s, opening gaps, 8

measuring

gaps, 4

volume, 135

Merck, volume and gaps, 128

MineFinders Corporation, 191

Modern Portfolio Theory, 80

Money Flow Index, 122

Monsanto, closing gaps, 211

moving averages

calculating, 140-144

categorizing, 144

down gaps, 147

gaps, 149-157

up gaps, 144

N

Netlist Inc., 149

moving averages, 151-152

Newmont Mining Corporation, 191

News Corp Ltd., 63

news summaries, high gap days, 165-171

Nison, Steve, 19

Norgate Investor Services, 43

Novagold Resources, 187, 191

O

Obama, President Barak, 166

Omnicare, 193

Omnivision Technologies, 185

On-Balance-Volume (OBV), 122

opening gaps, 8-10

Optimer Pharmaceutical, Inc., 103

P

patterns

Black-Down-Black, 112

Black-Down-White, 112

Black-Up-Black, 112

candlestick patterns, 26

abandoned baby bottom, 39

abandoned baby top, 37

collapsing doji star, 34

downward gap tasuki, 27

gapping doji, 32

gapping side-by-side white lines, 30-31

tasuki, 27, 29

two black gapping candles, 32

upward gapping tasuki, 27

Down-White-Down, 112

White-Down-Doji, 113

White-Up-White, 112

Pearson, downward gap tasuki, 27

Premium Data, 43, 65

previous day candle color, gaps, 109, 112-114

price, 121

price adjustments, 44

price movements, 77

examples of, 114-118

profitable trading examples, 94-105

R

RBS, 34-36

Resmed Inc., extreme values, 89

returns

annualized returns, 76

calculating, 71-76

daily returns, 76

luck, 77-79

market adjusted returns, 82-89

profitable trading examples, 94-104

risk, 79-82

reversal strategies, gaps, 13

reversals, 173

rising windows, 19

risk, impact of, 79-82

Royal Gold Inc., 191

runaway gaps, 4, 6

running windows, 19

S

Seagate Technology PLC, 64

September 2, 2011, 191

Sharpe, William, 80

Silver Wheaton Corporation, 191

simple moving averages, 140

size of gaps, 56-61

software, 43-45

Sprott Physical Silver Trust, 192

suspension gaps, 8

T

Taro Pharmaceutical, 50

tasuki, 27-29

technical analysis, 219

Temple Inland, 192

timing of closing gaps, 206-216

total gaps, high gap days, 159-160, 163, 171-174

trading

high gap days, 174-176, 179-182, 185-187, 191-195

how to use gaps, 13-14

with windows, 39-41

TravelZoo, 61

two black gapping candles, 32

U

Unisys Corp., extreme values, 89-91

Universal Display Corporation, 98-101

up gaps, 88, 131-132, 136, 221-223

moving averages, 144

upgap side-by-side white lines, 30

upward gapping tasuki, 27

V

values, extreme values, 89, 93-94

VIX, 163

volatility, VIX, 163

volume, 121-122

gaps and, 124-125, 128-129

down gaps, 125, 129

measuring, 135

up gaps, 131-132, 136

volume size, 132

W

Wal-Mart, 61

White-Down-Doji pattern, 113

White-Down-White pattern, 112

White-Up-White pattern, 112

windows, 17-19

as support and resistance, candlestick charts, 20, 23-25

candlestick patterns, 26

abandoned baby bottom, 39

abandoned baby top, 37

collapsing doji star, 34

downward gap tasuki, 27

gapping doji, 32

gapping side-by-side white lines, 30-31

tasuki, 27, 29

two black gapping candles, 32

upward gapping tasuki, 27

closing candlestick charting, 20

trading, 39-41

X-Y-Z

Xylem Inc, 191