A break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Gaps can be created by factors such as regular buying or selling pressure, earnings announcements, a change in an analyst's outlook or any other type of news release. (investopedia)
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| fig. 26A |
How can we tell if the gap was closed?
See fig. 26B.
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| fig. 26B |
Another example:
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| Fig. 27A |
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| Fig. 27B |
Another example:
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| Fig. 28A |
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| Fig. 28B |
In the next chapter, we will discuss type of gaps.
