Gap In Price

A gap in price denotes a day where the stock opens and trades several points above or below the previous day's trading range. It can be identified on a daily chart of a stock's price changes.

Gap in Price

A gap in price denotes a day where the stock opens and trades several points above or below the previous day's trading range. It can be identified on a daily chart of a stock's price changes.

 


Gap in Price Interpretation

There are two kinds of gaps: a break away that occurs just after a stock breaks out of a base, and an exhaustion gap that occurs after a stock has advanced for many weeks and is very extended from its most recent base and is close to topping in price.



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