# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Gap

Gaps on price charts develop when the high of the day is below the low of the previous day or when the low of the day is above the high of the previous day. Gaps indicate a possible change in trend, especially when accompanied by increased volume. A bullish breakaway gap forms when prices gap up after a period of decline, while bearish gaps form when prices gap down after an extended rally.

See also: Technical Analysis, Bar Chart