Price Gap
In technical analysis, a break on a chart representing a sudden and large price movement accompanied by high trading volume. Generally speaking, charts do not show price gaps because price movements, even when large, occur smoothly enough to not require a break in the chart. Price gaps may occur, for example, when the price of a security suddenly doubles or halves. As with many charting terms, it may be bullish or bearish; a sudden movement upward is a bullish price gap, while a sudden movement downward is bearish. It is also called a breakaway gap.
| breakaway gap In technical analysis, a gap in a chart pattern of price movement indicating a stock price has broken out of a trend on high volume. A breakaway gap is bullish if the price movement is upward and bearish if the price movement is downward. Compare runaway gap. See also exhaustion gap. |   |
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
| ?Page tools | ||
|---|---|---|
|