trade gap

Trading 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 trading gaps because price movements, even when large, occur smoothly enough to not require a break in the chart. Trading 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 trading gap, while a sudden movement downward is bearish. It may occur when there is a significant break between the bid and the ask, or when trading temporarily stops in anticipation of a major news announcement by the company.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

trade gap

a deficit in the BALANCE OF TRADE that arises when the value of a country's VISIBLE EXPORTSof goods is less than the value of its VISIBLE IMPORTS of goods. A trade gap as such may be of no particular concern provided it is offset by surpluses generated elsewhere on the BALANCE OF PAYMENTS. See TERMS OF TRADE, BALANCE-OFPAYMENTS EQUILIBRIUM.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005