Charts
What is Gap Up / Gap Down?
When a stock opens much higher or lower than it closed
Full Explanation
A gap happens when a stock's opening price is significantly different from the prior day's close — leaving a visible gap on the chart. Gaps are usually caused by earnings reports, major news, or analyst upgrades/downgrades.
Real-World Example
Stock closes at $100, then earnings come out after hours. Next morning it opens at $115 — that's a gap up.
Related Charts Terms
Learn Investing Like a Game
Bite-sized lessons, a $100K practice portfolio, and Mr. Guy to explain anything in plain English.
Create Free AccountFree forever. No credit card needed.