Gap (Price Gap)

A gap is a jump in a stock's price between one trading day and the next, with no trades happening in between. You'll see it on a price chart as a literal blank space where the stock jumped up or down overnight. Gaps matter because they often signal something important happened—earnings news, market-wide moves, or major company announcements—and they can affect how traders plan their next moves. For example, if TechCorp closed at $50 on Friday but opened at $47 Monday morning, that's a gap down. Gaps sometimes fill (the price comes back to close the gap), but not always, so they're worth watching when you're tracking a stock.