Date of this Version
This is the fourth of nine NebGuides laying the foundation for producers who want to study the technical side of market analysis.
Anyone studying technicals or markets is continually looking for trends, ways to measure market movement, and support and resistance areas. Many market analysts say the market "wants to fill a gap." Producers need to understand what this statement means, starting with a definition of the term "gap."
A gap in the market is formed when the trading range (high, low) operates outside the previous day's trading range. This occurs in highly volatile markets, not in slow moving sideways trends. Gaps occur when the market is about to make or end a major move.