Technical
What is Gap Up / Gap Down (1%+)?
A session opening at least 1% above the prior day's high (gap up) or below its low (gap down), leaving untraded space on the chart β overnight repricing made visible.
Formula
Gap Up: Open β₯ Prior High Γ 1.01; Gap Down: Open β€ Prior Low Γ 0.99
How to Interpret
Gaps with volume that HOLD through the session signal genuine repricing and often start trends ('breakaway gaps'); gaps that fill immediately suggest overreaction. Gap direction against the prevailing trend can mark exhaustion.
Typical Ranges
Common in single stocks around earnings; structural in assets with closed sessions. Nearly meaningless for 24/7 crypto, where true gaps barely exist.
Find Stocks Using This Signal
Screen US and Indian stocks by Gap Up / Gap Down in the Technical Screener.