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Definition of 'Common Gap'
A price gap found on a price chart for an asset. These gaps are brought about by normal market forces and, as the name implies, are very common. They are represented graphically by a non-linear jump or drop from one point on the chart to another point.
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Investopedia explains 'Common Gap'
In general, there is no major event that precedes this type of gap. Common gaps generally get filled relatively quickly (usually within a couple of days) when compared to other types of gaps. Common gaps are also known as "area gaps" or "trading gaps".
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See how you can profit from these disruptions in normal price patterns.
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Take a leap of faith and follow your stocks with gap patterns.
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On their own, single-day patterns can be unreliable, but that doesn't mean they can't be used effectively.
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