Some gaps are greater than others, and the “others” shouldn’t be left to “guesstimation” or missed due to being small enough to be overlooked; launching a trade in the opposite direction than expected. TrendSpider’s gap snake was built just for this task in mind. In this blog post, we will look at a case study using Fastly ($FSLY) using 3 of TrendSpider’s trend-spotting helpful indicators; The Gap Snake, Insider Trading Widget, and Events Tab.
This is a daily chart of Fastly looking at the last 4 earnings shown by the vertical dashed lines and what price has done afterward. This chart also highlights the gaps in price that have filled and that are still open since July of 2020. The sidebar on the chart also goes into detail on the recent insider transactions that have taken place for Fastly, showing quite a bit of selling over the last several months.
$FSLY Daily Candle: Earnings, Gaps, Insider Trading
1.This number shows the “gap snake” which is an automated gap detection feature on TrendSpider. Anytime there is a gap in price, this tool allows you to see where these gaps are located and if they have filled to the upside or downside. As you can see, there are still quite a few gaps above that have not filled over the last 3 months or so.
2. This number shows the earnings dates for Fastly since July of 2020. Notice that each time there is a vertical line, there is an “E” with the earnings details below. Also, notice that each time Fastly has had earnings, there is always at least an initial selloff (shown by the red box), and sometimes continued moves down as we have seen over the last two earnings releases.
3. This number shows insider transactions over the last several months. As you can see, insiders are dumping shares at a consistent pace with many of these sells being in the multimillion-dollar range. Generally, insiders selling shares is not seen as a bullish case for the stock price.
We hope that this case study provides you with an easy to understand introduction to the benefits of using the TrendSpider Gap Snake to gauge the direction price might take when open gaps are present near earnings calls. When used together with the Insider Trading Widget, profitable insights into things to come are within your purview for better trading decisions. Try out TrendSpider on a trial run for free here.