What is a gap where the chart appears to break off?
This is when a gap appears between the previous price and the next opening price.
Table of contents
Remember this first
First, 3 things to remember
- 1A gap is an empty space between two price ranges.
- 2It can appear depending on overnight news or trading hours.
- 3The empty interval is not necessarily filled again.
If it closed at 10 dollars and opened at 12 dollars
If the next opening price is significantly higher or lower than the previous closing price, the chart may appear disconnected. This gap is called a gap. If it starts at 10 dollars and opens at 12 dollars, it is a 20% higher price.
Charts showing only regular trading hours and those including pre- and post-market hours may look different. Check which time prices were actually connected.
Find the reason for the gap
If news breaks during low-volume hours or if market expectations shift, the next trading price may change. In some cases, the chart display changes after a stock split or consolidation.
There is no rule that says "because there is a blank space, it must return to that price." Saying a gap was filled is merely an explanation that the price returned to that range later.
You may not be able to sell at the expected price
If you intended to sell near 10 dollars but the next trade starts at 8 dollars, there is no guarantee that your desired trade could have occurred at the intermediate price.
At first, try writing down the previous closing price, the next opening price, trading time, and news date together. It is an exercise in reading what happened rather than the shape of the blank space.
You should not make such assumptions
“Every gap is eventually filled.”
There is no rule that the price must revisit the empty price range. It may move further away without returning.
Check what you have read.
- Did you check the previous closing price and the next opening price?
- Does the chart include pre-market and after-hours trading?
- Was there any news or a change in the number of shares?
Apply what you read to the actual screen
Try it on WAPE
Source and scope of verification
Reviewed · Version 2
- Identifying Chart PatternsNew window
Fidelity Investments · Verify 2026-10-20
Gaps, reversal patterns, and confirmation conditions - Holidays & Trading HoursNew window
NYSE · Verify 2026-10-20
Regular session 09:30–16:00 ET · Market holidays, early closures, and trading hours by market - Types of OrdersNew window
SEC Investor.gov · Verify 2026-10-20
Difference between market price and last traded price · Price conditions for limit orders
This is educational material for observation and information comprehension. Hypothetical examples do not represent actual stocks or performance and do not provide buy or sell recommendations.