Charts

What is Gap Up / Gap Down?

When a stock opens much higher or lower than it closed

Full Explanation

A gap happens when a stock's opening price is significantly different from the prior day's close — leaving a visible gap on the chart. Gaps are usually caused by earnings reports, major news, or analyst upgrades/downgrades.

Real-World Example

Stock closes at $100, then earnings come out after hours. Next morning it opens at $115 — that's a gap up.

Related Charts Terms

Candlestick

A chart shape that shows a stock's price movement in a time period

Moving Average

The average price of a stock over a set number of days

Golden Cross

A bullish signal when a short-term average crosses above a long-term one

MACD

A momentum indicator showing when a trend might be changing

View all Charts terms →

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