Windows (Gaps)
Windows (Gaps) is a financial term used to describe the difference between the price of a security at the beginning of a trading day and the price at the end of the day. This difference is usually measured in points or fractions of a point. It is also known as the “opening gap” or “closing gap”.
History of Windows (Gaps)
The concept of Windows (Gaps) was first introduced in the late 19th century by Charles Dow, the founder of the Dow Jones Industrial Average. He observed that the prices of stocks often moved in a predictable pattern, with the opening price of a stock often being higher or lower than the closing price of the previous day. This phenomenon became known as the “Dow Theory” and is still used today by many investors and traders.
Since then, the concept of Windows (Gaps) has been widely used by traders and investors to identify potential trading opportunities. By analyzing the size and direction of the gap, traders can determine whether a stock is likely to move up or down in the near future. This can be used to inform trading decisions and help traders make more informed decisions.
Table of Comparisons
Type of Gap | Description |
---|---|
Opening Gap | The difference between the opening price of a security and the closing price of the previous day. |
Closing Gap | The difference between the closing price of a security and the opening price of the next day. |
Summary
Windows (Gaps) is a financial term used to describe the difference between the price of a security at the beginning of a trading day and the price at the end of the day. This difference is usually measured in points or fractions of a point. It is also known as the “opening gap” or “closing gap”. By analyzing the size and direction of the gap, traders can determine whether a stock is likely to move up or down in the near future. This can be used to inform trading decisions and help traders make more informed decisions.
For more information about Windows (Gaps), please visit Investopedia, The Balance, and Investing.com.
See Also
- Gap Up
- Gap Down
- Breakaway Gap
- Exhaustion Gap
- Common Gap
- Runaway Gap
- Island Reversal
- Measuring Gap
- Continuation Gap
- Price Gap