Investor Glossary-price gapInvestor Glossary-price gapInvestor Glossary-price gapInvestor Glossary-price gapInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Price Gap

The HTML to link to this page
 

A price gap is simply an area within a particular time boundary of activity on a stock price chart, showing a price range where no actual trading occurred. There are generally four different types of price gap: the common price gap, breakaway price gap, runaway price gap, and the exhaustion price gap. A common price gap is a blank area between two consecutive day's trading ranges. For example, today's lowest price is higher than yesterday's highest price. Technical analysts tend to believe that this type of price gap has no significance. A breakaway price gap occurs when prices suddenly explode out of a congestion formation, leaving behind an empty area in which no trading has taken place in a considerable length of time or in which no trading has ever taken place. Technical analysts tend to believe that this type of price gap may signal the beginning of a new major trend. A runaway price gap appears following an already substantial price move, signaling a further continuation of the established trend. An exhaustion price gap is the opposite, marking a reversal of or the final stages of a previous major trend.



Rate this price gap definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: Key Rate Duration, EBITDA, phantom income, debt service coverage, inflation, liquidity ratio, wholly-owned subsidiary, limit order, Zero Cost Collar, FTSE, LIBOR, required rate of return, covered put, 401a, class C shares, diluted share, annual return, APR, stock market close, VIX, current ratio, labor relations, 144a, ex-dividend date, 1035 exchange, cancelled check, per diem, implied volatility, real GDP, minority interest, margin rate, command economy, ex-dividend, quality assurance, irrevocable trust, risk management, in escrow, reverse mortgage, retained earnings, deferred tax, dividends payable, average price per share, option premium, balance sheet, open position, 1031 exchange, stock split, FICO score, deferred revenue


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use