![]() A gap-and-crap will often occur when a stock has an especially large gap up, or gaps into resistance levels. Stock’s that do this will often fill their gap, and test nearby support levels from pre-market, and on the daily chart. ![]() This is when a stock reverses strongly after the market opens after gapping up pre-market. A stock gapping up to all-time highs is often the type of stock that Gap & Crap You see this kind of momentum when a stock gaps up over nearby by resistance levels, eliminating potential areas of supply to halt the stock’s uptrend. Now let’s get into the different types of patterns you will during a gap up or gap down: Gap & GoĪ gap & go is when a stock gapping up continues the upward momentum when the market opens. If $AMZN closes at $3400 and opens at $3100, that is a gap down. It is called a “gap-down” when the opposite happens. ![]() For example, If Amazon $AMZN closes at $3200 and then opens the next day at $3300, that is a gap up. It is called a “gap-up” when a stock trades higher than it’s prior closing price. Sometimes press releases can cause large gaps in either direction, as a larger number of buyers and sellers enter the market. In pre-market and after-hours trading, stocks can rise and fall in price. Let’s start by defining what a stock gap is: What is a Stock Gap?Ī stock gap is simply a change in a stock’s price from its prior close. Today we will give you an introduction to stock gaps, and the different ways stocks will behave. No matter what type of trader or investor you are, you need to understand stock gaps. Stocks gapping in pre-market offer some of the best opportunities for day trading and swing trading. ![]() Every day there are thousands of stocks gapping up and down. ![]()
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