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Sometimes a stock will open at a much higher or lower price than the previous trading day. Furthermore, the stock will not trade as low or as high as the highest or lowest price from that previous trading day. In this case, a gap has been created (the stock did not trade in a price range that falls in between the high and low prices between two days). A stock fills the gap when it trades to that first day's highest (or lowest) price on a day after the second trading day (the day that created the gap). Some stock market traders have a theory (or superstition) that a stock must always 'fill the gap' at some point later in its trading history.

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17y ago

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