Hi thulasiappan ,

That u mentioned from John J Murphy 's gap explanation are those significant gaps . What I was mentioning here are those insignificant common gaps . Those gaps I was talking about were mostly at the turning points , or sometimes at their tops or bottoms , therefore there are always much more trading opportunities then others . However , there is absolutely no reason why the gaps must be filled .

Bintang .

According to John J. Murphy “price gaps are simply areas on the bar chart where no trading has taken place. In an uptrend , if the prices open above the highest price of the previous day, or in down trend, the day’s highest price is below the previous day’s low leaving a gap or open space on the chart that is not filled during the day”. 

But in the case of mermaid on the 6th Nov it opened at 0.745 and closed at 0.72. The next day it opened at 0.73 and closed at 0.815. So the 7th Nov price opened within the previous day's open and close price. If I follow John J. Murphy then there is no price gaps need to be filled. That is the reason I confused. 

Hi thulasiappan ,

Pls check the chart on 06/11/09 when the closing price was 72 cents , n the next day it started to trade from 73 cents . This was how the gap was formed .

Hi Bitang,

In mermaid's chart I could not see any gap at 72 cents. I am confused hope you can enlighten me.  

Anyway Thanks for your helpful postings.