A Gap Down occurs when the current day's opening price is significantly lower than the previous day's closing price. This creates a visible gap on the price chart where no trading activity took place. Gaps can occur due to various factors, including Unexpected negative news, Order imbalances & Other Technical factors. A Gap Down can be seen as a signal of increased selling pressure and potential further downward movement. It suggests that sellers are eager to push the price lower and break through support levels.
Gap Down, more examples
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