<P> A gap is defined as an unfilled space or interval . On a technical analysis chart, a gap represents an area where no trading takes place . On the Japanese candlestick chart, a window is interpreted as a gap . </P> <P> In an upward trend, a gap is produced when the highest price of one day is lower than the lowest price of the following day . Thus, in a downward trend, a gap occurs when the lowest price of any one day is higher than the highest price of the next day . </P>

What is a gap on a stock chart