A gap is the market showing you its energy
One of my traders asked me what a gap means. Great question, and most people miss it completely. They see a stock clear a level and go, cool, we're through, off to the races. Not so fast, my friend. How it got through that level is the whole story. So here is how I read it. A gap is energy. When a stock jumps over a level instead of grinding up through it, that jump is the market showing you it has fuel behind the move. That is the market talking to you. And I want you to learn how to listen. Stare at any long-term chart, up or down, and you will see it. The moves that last, the ones that go and keep going, they are built on gaps. Gaps are the technical gateway. No gap, no go. Let me make it plain. A stock can close a