Gap Fills Explained (GAP, DELL, GOOGL)
Summary History (10 versions)
Version 10
Show prompt
You are a judge tasked with synthesizing multiple draft summaries of a trading video transcript into a single final summary.
Original transcript:
{source_text}
Draft summaries:
{drafts}
Evaluate each draft for completeness, accuracy, and format compliance against the original transcript. Produce a single final summary that combines the best elements from all drafts. Return ONLY the final summary, no preamble or reasoning.
**Verified Investing â Gap Fill Trading Playbook (Lawton Ho)**
**What is a Gap Fill?**
- A gap occurs when a candle opens at a price that is different from the previous candleâs close.
- A *gap fill* happens when price later moves back to the level of that gap, âfillingâ it.
- Gaps remain âvalidâ until they are filled; once filled they can act as support or resistance.
**Why Gaps Matter**
- The larger the gap, the stronger the potential support/resistance.
- Gaps caused by significant news (e.g., earnings) are especially powerful.
- Gap fills are a dailyâused indicator for the presenter and can signal entry/exit points.
**Key Examples from the Video**
| Ticker | Gap Type | Gap Level | Gap Size | Gap Reason | Gap Fill Status | Notes |
|--------|----------|-----------|----------|------------|-----------------|-------|
| **GAP** | Gap up | $20.79 | ~? | Earnings | **Not yet filled** â price has not returned to $20.79 | Acts as resistance if it remains unfilled |
| **Dell (DELL)** | Gap up | $73.50 | ~32% | Earnings | **Not yet filled** â still a powerful resistance | Gap down at $55.36 is a valid support after fill |
| **Google (GOOGL)** | Gap up | $2,275.50 | ~7% | Earnings | **Filled** â price returned to this level | Becomes a resistance level |
| | Gap down | $2,125.50 | ~6% | Earnings | **Filled** â price returned to this level | Becomes a support level |
**Trading Rules Highlighted**
- **Long Entry**: When price approaches a valid gapâfill support level, consider buying.
- **Short Entry**: When price nears a valid gapâfill resistance level, consider selling.
- **Exit**: Move out when price breaks the gapâfill level or reaches a preâset target.
- **Risk Management**: Use stopâlosses around the gapâfill level (exact placement not specified in the video).
**Additional Takeaways**
- Gaps can be âvalid foreverâ until filled; once filled, they still influence price but are less powerful.
- Not all gaps are equal; earningsâdriven gaps tend to be larger and more reliable.
- The presenter plans to share three actionable trade setups based on gap fills in the next episode.
**Summary**
Lawton Ho explains that gap fills are a key daily indicator in his trading playbook. By identifying where price has previously skipped a level and then returned to fill that gap, traders can spot strong support and resistance zones. The video walks through realâworld examples (Gap, Dell, Google), noting gap size, cause, and current validity, and outlines a simple approach to trade these levels.
Version 9
Show prompt
Summarize the following YouTube trading video transcript. Extract:
- Stock tickers mentioned and any price levels (support, resistance, targets, stop-losses) associated with each
- Key trading strategy
- Indicators used
- Entry/exit rules and suggested trades
- Timeframes mentioned
- Risk management tips
Format the summary in clear bullet points.
Transcript:
{transcript}
**Summary:**
- **Stock Tickers & Price Levels:**
- Gap (GAP): Gap fill at $20.79 (resistance), no recent gap fills for support.
- Dell (DELL): Gap fill at $55.36 (support), powerful gap at $73.50 (resistance).
- Google (GOOGL): Previous gap fills at $2,125.50 (support) and $2,275.50 (resistance), not currently valid.
- **Key Trading Strategy:**
- Gap fills: Price returns to previous gaps and fills them, creating support/resistance levels.
- **Indicators Used:**
- Gap fills as primary indicator.
- Size of gap and reason for gap (e.g., earnings) influence gap's power.
- **Entry/Exit Rules & Suggested Trades:**
- Enter long when price approaches gap fill level (support).
- Enter short when price approaches gap fill level (resistance).
- Exit trades when price moves away from gap fill level by a certain amount or reaches target price.
- **Timeframes Mentioned:**
- Daily charts.
- **Risk Management Tips:**
- Not explicitly stated in the video.
- Implicitly, use stop-loss orders to manage risk (not specified where to place stop-loss orders).
Version 8
Show prompt
Summarize the following YouTube trading video transcript. Extract:
- Stock tickers mentioned and any price levels (support, resistance, targets, stop-losses) associated with each
- Key trading strategy
- Indicators used
- Entry/exit rules and suggested trades
- Timeframes mentioned
- Risk management tips
Format the summary in clear bullet points.
Transcript:
{transcript}
### **Trading Playbook Summary: Gap Fill Strategy**
**Stock Tickers and Price Levels**
* **GAP (Stock):**
Version 7
Show prompt
You are a judge tasked with synthesizing multiple draft summaries of a trading video transcript into a single final summary.
Original transcript:
{source_text}
Draft summaries:
{drafts}
Evaluate each draft for completeness, accuracy, and format compliance against the original transcript. Produce a single final summary that combines the best elements from all drafts. Return ONLY the final summary, no preamble or reasoning.
**Gap Fill Trading Playbook â Key Takeaways**
| Concept | Details |
|---------|---------|
| **What is a gap?** | A price difference between the close of one candle and the open of the next. |
| **What is a gap fill?** | When price later moves to the level of the gap and âfillsâ it. Gaps stay valid until they are filled. |
| **How to spot a gap on a chart** | ⢠Green candle: open at bottom, close at top. <br>⢠Red candle: open at top, close at bottom. <br>Gap is the space between the previous candleâs close and the next candleâs open. |
| **Why gaps matter** | ⢠Often signal a strong move. <br>⢠Larger gaps and those caused by news (e.g., earnings) tend to be more powerful. <br>⢠Once filled, the level can act as support or resistance. |
| **Examples from the video** | **Gap Inc. (GPS)** â Gap up after AugâŻ27 earnings to **$20.79**; still unfilled, so the level is a potential support. <br>**Dell (DELL)** â 32âŻ% gap up after FebâŻ26 earnings to **$50.50**; gap was filled later, but the move was powerful. <br>**Google (GOOGL)** â 7âŻ% gap up to **$1350** (earnings) and 6âŻ% gap down to **$1850** (earnings); both gaps have been filled, so they now serve as historical support/resistance levels. |
| **Practical use** | ⢠Identify gaps on any timeframe; they remain valid until price revisits the level. <br>⢠Use filled gaps as potential entry points or as dynamic support/resistance. <br>⢠Larger, earningsâdriven gaps are higherâprobability targets. |
| **Next steps** | The next episode will present three actionable trade setups based on gap fills. |
| **Presenter** | Lawton Ho, Verified Investing. |
**Bottom line:** Gap fills are a simple yet powerful indicator that the speaker uses daily. By recognizing when a gap has been filled, traders can gauge where price may find support or resistance and anticipate future moves, especially around significant gaps created by earnings or other news events.
Version 6
Show prompt
Summarize the following YouTube trading video transcript. Extract:
- Stock tickers mentioned and any price levels (support, resistance, targets, stop-losses) associated with each
- Key trading strategy
- Indicators used
- Entry/exit rules and suggested trades
- Timeframes mentioned
- Risk management tips
Format the summary in clear bullet points.
Transcript:
{transcript}
**Summary:**
- **Stock Tickers & Price Levels:**
- Gap (GPS): Gap up on earnings on Aug 27, 2020, creating a gap at $20.79. Not filled yet.
- Dell (DELL): Gap up on earnings on Feb 26, 2020, creating a 32% gap at $50.50. Filled but less powerful than GPS.
- Google (GOOGL): Gap up on earnings on Apr 26, 2020, creating a 7% gap at $1350. Gap down on earnings on Feb 3, 2021, creating a 6% gap at $1850. Both gaps filled, not currently valid.
- No specific stop-loss levels mentioned.
- **Key Trading Strategy:**
- Focus on gap fills as the single biggest indicator used daily.
- Larger gaps and gaps created on news events (like earnings) are more powerful.
- **Indicators Used:**
- Gap fills (based on price action and candle patterns).
- **Entry/Exit Rules & Suggested Trades:**
- No specific entry/exit rules or trades mentioned in this episode. However, in the next episode, Lottenho will provide three actionable trade setups based on gap fills.
- **Timeframes Mentioned:**
- No specific timeframes mentioned for analysis or trading.
- **Risk Management Tips:**
- No specific risk management tips mentioned in this episode.
Version 5
Show prompt
Summarize the following YouTube trading video transcript. Extract:
- Stock tickers mentioned and any price levels (support, resistance, targets, stop-losses) associated with each
- Key trading strategy
- Indicators used
- Entry/exit rules and suggested trades
- Timeframes mentioned
- Risk management tips
Format the summary in clear bullet points.
Transcript:
{transcript}
### **Trading Video Summary: The Gap Fill Playbook**
**Stock Tickers & Price Levels**
* **GAP (Gap Inc.):**
* **Unfilled Gap Up:** $20.79 (Created following
Version 4
Show prompt
You are a judge tasked with synthesizing multiple draft summaries of a trading video transcript into a single final summary.
Original transcript:
{source_text}
Draft summaries:
{drafts}
Evaluate each draft for completeness, accuracy, and format compliance against the original transcript. Produce a single final summary that combines the best elements from all drafts. Return ONLY the final summary, no preamble or reasoning.
**Gap Fill Trading Playbook â Key Takeaways**
| Concept | Details |
|---------|---------|
| **What is a Gap?** | A price difference between the close of one candle and the open of the next. |
| **What is a Gap Fill?** | When price later returns to the level of the gap, âfillingâ it. Gaps remain valid until they are filled. |
| **Why Gaps Matter** | ⢠Larger gaps tend to be more influential. <br>⢠Gaps created by news events (e.g., earnings) are especially powerful. <br>⢠Filled gaps can act as support or resistance. |
| **Gap Examples** | **Gap Inc. (GPS)** â Gap up after AugâŻ27 earnings; gap level **$20.79** (unfilled, acting as resistance). <br>**Dell (DELL)** â 32âŻ% gap up after earnings; gap level **â$64.00** (highâstrength resistance). Smaller gap at **$48.60** (support). <br>**Google (GOOGL)** â 7âŻ% gap up after earnings; gap level **â$2,086** (currently filled). 6âŻ% gap down after earnings; gap level **â$2,182** (currently filled). Current gaps: a downâgap near the low of the chart (support) and an upâgap near the high (resistance). |
| **Trading Strategy** | ⢠**Long** when price approaches a valid gapâfill support level and starts to move up. <br>⢠**Short** when price nears a gapâfill resistance level and shows reversal signs. <br>⢠**Exit** when the gap is filled or use a stopâloss to protect against false breakouts. |
| **Risk Management** | ⢠Place stopâlosses just beyond the gap level to limit downside. <br>⢠Recognize that not all gaps are equal; prioritize larger, earningsâdriven gaps. |
| **Implementation Notes** | ⢠Gap fills can be applied on any timeframe, but the speaker uses them daily. <br>⢠Previous gap fills can be plotted as dynamic support/resistance. <br>⢠Upcoming videos will provide three actionable trade setups based on these concepts. |
*This summary distills the core concepts, examples, and practical trading rules presented in the video on gap fills.*
Version 3
Show prompt
Summarize the following YouTube trading video transcript. Extract:
- Stock tickers mentioned and any price levels (support, resistance, targets, stop-losses) associated with each
- Key trading strategy
- Indicators used
- Entry/exit rules and suggested trades
- Timeframes mentioned
- Risk management tips
Format the summary in clear bullet points.
Transcript:
{transcript}
**Summary:**
- **Stock Tickers & Price Levels:**
- Gap (GPS): Gap fill at $20.79 (resistance)
- Dell (DELL): Gap fill at $48.60 (support), powerful gap at $64.00 (resistance)
- Google (GOOGL): Gap fill at $2,086.00 (support), previous gap fill at $2,182.00 (resistance)
- **Key Trading Strategy:**
- Gap fills: Price returning to fill gaps created by previous trading sessions.
- Larger gaps and gaps created by news events (e.g., earnings) are more powerful.
- **Indicators Used:**
- Gap fills as the primary indicator.
- Previous gap fills can act as support/resistance levels.
- **Entry/Exit Rules & Suggested Trades:**
- Enter long when price approaches and fills a gap (support level).
- Enter short when price approaches and reverses from a gap (resistance level).
- Exit trades once the gap is filled or use a stop-loss order to manage risk.
- **Timeframes Mentioned:**
- Not explicitly stated, but the strategy can be applied to various timeframes.
- **Risk Management Tips:**
- Use stop-loss orders to manage risk.
- Be aware that not all gaps are equally powerful; larger gaps and those created by news events are more significant.
Version 2
Show prompt
Summarize the following YouTube trading video transcript. Extract:
- Stock tickers mentioned and any price levels (support, resistance, targets, stop-losses) associated with each
- Key trading strategy
- Indicators used
- Entry/exit rules and suggested trades
- Timeframes mentioned
- Risk management tips
Format the summary in clear bullet points.
Transcript:
{transcript}
### **Trading Playbook Summary: Gap Fill Strategy**
**Overview**
The video focuses on the concept of "Gap Fills," which the speaker identifies as his most significant technical indicator. A gap occurs when a stock opens at a price different from the previous day's close. A "gap fill" occurs when the price eventually returns to that specific price level.
**Stock Tickers and Price Levels**
* **GAP (Gap Inc.):**
* **Unfilled Gap Up:** $20.79 (Created following earnings on August 27th).
* **DELL:**
* **Powerful Gap Up:** A 32% gap up following earnings (noted as a high-strength level).
* **GOOGL (Google):**
* **Historical Gaps:** 7% gap up and 6% gap down (both currently filled).
* **Current Levels:** The speaker identifies one valid gap down acting as **support** and one valid gap up acting as **resistance**, though specific numerical values were not provided for the current levels.
**Key Trading Strategy: Gap Fill Trading**
Version 1
Show prompt
Summarize the following YouTube trading video transcript. Extract:
- Stock tickers mentioned and any price levels (support, resistance, targets, stop-losses) associated with each
- Key trading strategy
- Indicators used
- Entry/exit rules and suggested trades
- Timeframes mentioned
- Risk management tips
Format the summary in clear bullet points.
Transcript:
{transcript}
**Summary:**
- **Stock Tickers & Price Levels:**
- Gap (GPS): Gap fill at $20.79 (resistance)
- Dell (DELL): Gap fill at $47.50 (support), powerful gap at $68.50 (resistance)
- Google (GOOGL): Previous gap fills at $2,830 (support) and $2,950 (resistance), valid gap fill at $2,650 (support)
- **Key Trading Strategy:**
- Gap fills: Price returning to fill gaps created by price openings
- Larger gaps and gaps created by news events (e.g., earnings) are more powerful
- **Indicators Used:**
- Gap fills as the primary indicator
- Previous gap fills can act as support/resistance levels
- **Entry/Exit Rules & Suggested Trades:**
- Enter when price approaches gap fill levels
- Exit when price moves away from gap fill levels or when the gap is filled
- Tomorrow's episode will provide three actionable trade setups based on gap fills
- **Timeframes Mentioned:**
- Daily charts
- **Risk Management Tips:**
- Not explicitly stated in the video