Revision as of 12:48, 19 July 2011 edit Altafqadir (talk \| contribs) 861 edits →Types of gaps ← Previous edit		Revision as of 13:01, 19 July 2011 edit undo Altafqadir (talk \| contribs) 861 edits small corrections Next edit →
Line 5: In an upward [[Market trend\|trend]], a gap is produced when the highest [[price]] of one day is lower than the lowest price of the following day. Thus, in a downward trend, a gap occurs when the lowest price of any one day is higher than the highest price of the next day. For example, the price of a share reaches a high of $30.00 on Wednesday, and opens at $3631.0020 on Thursday, falls down to $3531.00 in the early hour, moves straight up again to $3731.0045, and no trading occurs in between $30.00 and $3530.0099 area. This no-trading zone appears on the chart as a ''gap''. Gaps can play an important role when spotted before the beginning of a move.

Gap (chart pattern): Difference between revisions