Sep

14

Gaps, from Sushil Kedia

September 14, 2015 |

If Volume as well as Open Interest are indications of the amount of struggle for the discovery of price, which seems a likely good way to look at these two important variables in market data, then price gaps or price jumps must be occurring at moments of high consensus and low struggle.

Consensus fades. A point of high consensus, if identifiable, is a good point to search for fading trades.

Then, how come a market as Hong Kong continues to display for long years continued gaps on the daily price plots? If indeed these opening gaps are a strong consensus developing with overnight news (I wonder why should only in the Hong Kong market the news-vendors are so efficient, chuckles) then why are the daily candles not displaying too many hanging mans and the faders are unable to prevail? This leads to a disturbing instinct, that the gaps in Hong Kong are something else and not points of low struggle high consensus price jumps. Those price jumps are something else.

What is underlying this "regular" opening gap behaviour in Hong Kong that is "irregular" in the context of how other large markets are?


Comments

WordPress database error: [Table './dailyspeculations_com_@002d_dailywordpress/wp_comments' is marked as crashed and last (automatic?) repair failed]
SELECT * FROM wp_comments WHERE comment_post_ID = '10619' AND comment_approved = '1' ORDER BY comment_date

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search