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General TradingG

Gap Up

A gap up occurs when an asset opens at a price significantly higher than the previous session's close, leaving a visible gap on the chart with no trading in the intervening price range. Gap ups are often triggered by positive news, strong earnings, or bullish overnight developments.

Example

The pharmaceutical company's stock gapped up 15% at the open after the FDA approved its new drug, leaving a large unfilled gap on the daily chart.