Gap (chart pattern): Difference between revisions

Revision as of 23:27, 2 March 2022

Revision as of 23:28, 2 March 2022

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{{unreferenced|date=October 2021}}

[[File:Allgaps new.jpg|right|thumb|290px|Sequence of Gaps]]

A '''gap..''' is defined as an unfilled space or interval. On a [[technical analysis]] chart, a gap represents an area where no trading takes place. On the Japanese candlestick chart, a window is interpreted as a gap.

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. Conversely, 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.