The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we are going to be answering the question, “Are breakaway gaps reliable indicators of trend changes?” Now, I always think it’s interesting to talk a little bit about chart patterns and market patterns because a lot of it is pretty subjective. I mean, there's a lot of things that can be left up to interpretation. Was that a shooting star or was that a pennant pattern? There's a lot of interpretation to it. But I do think there's some meaning behind it. I won’t totally discredit it. I don't think it’s something that you absolutely need to have and understand to be successful. We've clearly proven in our back-testing research and our own trading that you don't need to understand chart patterns or market dynamics to be successful. But having a decent understanding of them I don't think hurts either because if you see something on a chart and particularly on candlestick charting, it can be a good indication of when