Gap

The most common definition of a trading gap is the difference between yesterday’s closing price and today’s opening price for a security.  If a stock closes at one price, and opens the next day at a higher price, we say it gapped up.  If it closes at one price and opens the next day at a lower price, we say it gapped down.  If the close and the following open were the same, we say there was no gap.

A gap is often a specific number.  If a stock closes at $10.00 and opens the next day at $10.05, we say the gap was 0.05, or we say the stock gapped up 0.05.  If a stock closes at $10.00, and opens the next day at 9.90, we say the gap was -0.10, or the stock gapped down 0.10.  If a stock closes at $10.00, and opens at 10.00, we say the gap was 0.00.

Trade-Ideas offers many alerts based on the gap.  These are listed below.  Additionally, you can filter all of our alerts based on the gap.

Alert Types

We offer the following alert types which are related to this topic.  Click on the icon for a detailed description of the alert, or click on the example link for additional samples of each type of alert.