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Gaps

Not tested by us Not tested by us yet. No verdict stamp.

A gap happens when the next bar opens far from the last close, often overnight or after news. Stock markets that close every evening show more gaps than markets that trade around the clock.

What traders claim: some say gaps get 'filled' (price comes back), others say gaps show strength. Both stories exist.

Gaps matter for risk too. The SECThe US stock market regulator. notes a stop orderAn order that activates when a price level is hit. can fill far from its stop price in fast markets. See Stop order.

Evidence: see Do chart patterns work? What the research says. In short: mixed, and very sensitive to how you define the pattern.

Related

• Stop order
• Volatility
• Do chart patterns work? What the research says

Sources & studies

1. Investopedia (secondary): Gap
2. Investor.gov (SEC): Investor Bulletin – stop, stop-limit and trailing stop orders

Chart and candlestick patternsStop orderVolatility

Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.