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Gaps On Stock ChartsWhen you see gaps on stock charts they are referred to as gaps. Gaps occur mainly when a situation such as a major news story occurs overnight. Depending on the buying or selling pressures related to a story; the stock price can either gap up or down by the time the markets open the next day such as on the chart below. This is because the sellers or the buyers have overwhelmed one or the other causing a gap in the price.Some professional investors are good at reading gaps when the markets first open. As a beginner though gaps are nothing to be concerned about; unless a major news story occurring overnight is going to significantly impact your portfolio negatively. Which to be honest does not occur that often.
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Pick Quality Stocks:If you are looking for the best technical analysis stock picking software, then check out our Stock Software Reviews.Top Online Brokers:Looking for the best online stock brokers? Then check out our Broker Reviews.Emergency Funds:Before you ever invest in stocks or other risky investments you should have an emergency fund in place: Emergency FundPay-It-Forward: |
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