Charts & technicals

What is Gap up and gap down?

Also called: Gap, Gap down

Hinglish mein padhein: Gap up aur gap down kya hota hai?

A gap up is when a stock opens above the previous day's high (or close); a gap down opens below. Gaps usually follow overnight news.

Some gaps get 'filled' as price returns to the prior close; others start strong trends, especially on results.

Stop-loss orders cannot protect you from a gap — the exit happens at the first available price.

Related terms