• Download software • Tutorial videos
• Subscription & data-feed pricing • Class schedule


• New account application • Trading resources
• Margin rates • Stock & option commissions

Attention: Discussion forums are read-only for extended maintenance until further notice.
Welcome Guest, please sign in to participate in a discussion. Search | Active Topics |

Worden Discussion Forum » Customer Training & Support » Ask a Trainer - TC2000 version 7 » Gapping Simple Question

Gapping Simple Question Rate this Topic:
Previous Topic · Next Topic Watch this topic · Print this topic ·
duketrade
Posted : Tuesday, December 13, 2011 2:22:02 PM
Registered User
Joined: 11/14/2006
Posts: 6

When a stock "gaps" at the opening, does that mean the stock opens higher or lower than the entire previous day's trading range or just higher or lower than the previous day's close?

Many thanks.
Back to top
Bruce_L
Posted : Tuesday, December 13, 2011 2:27:53 PM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138
 You may think it is a simple question, but it is one I ask almost every time a customer makes a request for this. I do so because there is absolutely no agreement as to the answer.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
Back to top
Putt4Dough
Posted : Tuesday, December 13, 2011 2:47:06 PM

Registered User
Joined: 7/30/2007
Posts: 1,072

QUOTE (duketrade)
When a stock "gaps" at the opening, does that mean the stock opens higher or lower than the entire previous day's trading range or just higher or lower than the previous day's close?

I guess the answer to both is "Yes".


I don't trade gaps, but here's the lingo one of the other vendors (rhymes with "MockCharts") uses in its documentation to address the different types of gaps you mention above...

For trading purposes, we define four basic types of gaps as follows:

  • A Full Gap Up occurs when the opening price is greater than yesterday's high price.
  • A Full Gap Down occurs when the opening price is less than yesterday's low.
  • A Partial Gap Up occurs when today's opening price is higher than yesterday's close, but not higher than yesterday's high.
  • A Partial Gap Down occurs when the opening price is below yesterday's close, but not below yesterday's low.
Hope this helps.
Back to top
duketrade
Posted : Tuesday, December 13, 2011 8:57:58 PM
Registered User
Joined: 11/14/2006
Posts: 6
 Thanks both and it does help.
Back to top
StockGuy
Posted : Wednesday, December 14, 2011 10:52:22 AM

Administration

Joined: 9/30/2004
Posts: 9,187
 I've always understood it as a "full gap". Stocks rarely open at the exact price they closed at the day before so essentially every stock "gaps", partially, every market day.
Back to top
diceman
Posted : Wednesday, December 14, 2011 1:02:20 PM
Registered User
Joined: 1/28/2005
Posts: 6,049

Some rate 10 Gap Zones:


Yesterday closed down:
D-H    Above yesterdays high
D-HO Between yesterdays high and open
D-OC Between yesterdays open and close
D-CL  Between yesterdays close and low
D-L    Below yesterdays low


Yesterday closed up:

U-H    Above yesterdays high
U-HC Between yesterdays high and close
U-CO Between yesterdays close and open
U-OL Between yesterdays open and low
U-L    Below yesterdays low


Thanks
diceman
Back to top
Users browsing this topic
Guest-1

Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.