What is Gap?

A break in price action where no trading has occurred, typically between the Friday close and Sunday open.

In-Depth Explanation

Gaps often happen when major news breaks over the weekend while the market is closed. "Closing the gap" is a common trading strategy.

"The S&P 500 gapped down 2% on Monday morning due to geopolitical tensions."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.