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 hair above a level, day after day, and just kind of hang out there. That is the market walking.

A gap is the market running. Same direction, totally different power behind it, and your account feels every bit of it.

Why do you care? Because momentum needs fuel to last. A move that only closes over resistance can stall the next morning and roll right back under, and now momentum is getting drowned.

A move that gaps over resistance is carrying energy through the level. That is what lets it gain and sustain.

So do not just ask if price got above a level. Ask how it got there. Did it walk, or did it jump?

A stock that gaps and holds is telling you the buyers showed up with force. A stock that only closes over is telling you they showed up, but barely.

One of those has staying power. The other one is hoping, and hoping is not a strategy.

And once you start reading charts this way, you cannot unsee it. You will look at any setup and instantly know if the market is walking or running.

That, my friend, is you reading the market instead of guessing at it.

Rock On,

Voz