Technical analysis
Gap
A gap is a "hole" on the chart: a price jump between one period's close and the next period's open.
A gap is a "hole" on the chart: a price jump between one period's close and the next period's open.
Gaps often appear at the open after major news (earnings, an announcement). Some get "filled" when price returns to close the hole; others launch a strong move. Day traders watch them closely.
A stock closes at $50 and opens the next day at $55 after strong earnings: a $5 gap.
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