Gap

When the price of a stock moves very sharply up or down with no trading in between. Therefore, the chart shows a break between the prices (no line connecting).




An example of a gap is a stock that goes from $50 to $55 with no trading occurring between these two prices.



Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more.
Related Terms

Breakaway Gap

Exhaustion Gap

Runaway Gap

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