Price Gap Trading Deep Dive: Common, Breakaway, Continuation, Blow-Off
GPSGap(GPS) ZACKS·2024-08-15 05:31

Price gaps are one of the most misunderstood areas in technical analysis. Price gaps occur when the price of a stock or ETF trades above or below the previous session’s closing price, leaving a distinguishable space on the price chart. Gaps can occur for a plethora of different reasons, or they can happen for no reason at all. They can have little or no meaning to a trend, or mark the start of a fresh and powerful trend. Understanding the Different Types of Price Gaps1. Common Gap: These gaps occur most fre ...