Gap down bought back
Opened more than 2% below yesterday's close and finished above the open. The morning panic found buyers.
A gap down is the overnight news priced in a single print. What happens next is the market's verdict on whether that price was right. When a 2% hole gets bought back to a close above the open, the sellers got their exit and the stock ran out of them. That is the anatomy of a bear trap, visible on a daily bar.
More volatility:Bollinger squeezeWide-range moversGap up and holdGap down and failUp 15% in a month
Price and delivery data from the eod2 dataset: National Stock Exchange of India end-of-day files, split- and bonus-adjusted, updated after each close. Not affiliated with or endorsed by NSE. PatternsRadar is a research tool. Nothing here is investment advice or a recommendation to buy or sell anything.