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—the closing price one day doesn't connect to the opening price the next day. Gaps matter because they often signal something important happened: earnings news, a major announcement, or market-wide shifts. They can also catch traders off guard. For example, if TechCorp closes at $50 on Friday but opens at $47 on Monday after disappointing earnings, that $3 drop is a gap. Some investors watch for gaps to reverse (fill back in), while others see them as confirmation that a trend is real.