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GAP UP / GAP DOWN

Today's open is much above or below yesterday's close.

Published by The Retail Trader · JUL 31, 2026 · Price Action

Gap Up / Gap Down — Today's open is much above or below yesterday's close. Often because of news or global cues.

WHERE THIS FITS IN

This term comes under Price Action, in the "MOVE terms" section. Ab the words that come up in every trading conversation — getting them wrong is the most costly:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Trend
• Sideways / Range
• Pullback
• Retracement
• Reversal
• Breakout
• Breakdown
• Fakeout / False Breakout
• Retest
• Gap Fill
• Consolidation
• Momentum

To read the entire group and all its examples in one place, see the journal "PRICE ACTION: THE LANGUAGE OF THE CANDLE" - this term is taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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