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Why gaps are important in trading

Submitted by sakar on December 4, 2009 - 23:59

What is Gap open or Gap close ? A stock opened above or below it's previous closing price. For example SBI stock closed on day at 2120 Rs. Next morning you start the day and stock is starting the day with 2150 . That's a gap open of 30 Rs. Why it's important for traders.

I was reading about and trying to understand how can gap affect price performance of a stock and came across this lesson ( link below ) . I really liked the article and it increases your trading efficiency and finding patterns .

http://www.learningmarkets.com/index.php/200909144653/Stocks/Technical-A...

Submitted by shambhu12 on December 5, 2009 - 00:04. #

Nice stuff. Keep sharing

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