Gap (chart pattern): Difference between revisions

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[[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.<ref>{{Cite web |title=Gap Trading: How to Play the Gap |url=https://www.investopedia.com/articles/trading/05/playinggaps.asp |access-date=2024-02-24 |website=Investopedia |language=en}}</ref> Gaps are spaces on a chart that emerge when the price of the financial instrument significantly changes with little or no trading in between.
 
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.