I have been tracking the daily gaps over the last month and decided to create this chart from the data for general use.
A gap on a daily chart happens when the stock closes at one price but opens the following day at a different price due to after hours buying and selling. This chart tracks the frequency of these gaps and weather or not they close intraday.
Some traders like to play the gaps to make a quick return on small movements. As you can see the gap usually closes intraday giving you the opportunity to sell (or buy back) for a profit.
Many have purchased shares early morning thinking they were going to miss out only to be in the red shortly after and given the opportunity to get in for less.
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