Gap

A jump in price that leaves a hole in the chart

In detail

A gap appears when trading opens above the previous high or below the previous low, leaving empty space between candles. It happens most often when earnings or major news land outside trading hours. Price returning to fill that space is called filling the gap, but nothing says it must.

Example

If yesterday's high was $1,050 and today opens at $1,100, a gap sits between $1,050 and $1,100.

Related terms

Candlestick Volatility Earnings report Filling the gap

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