more gap analysis, the common gap

Yesterday, I started talking about gaps. There are four kinds of gaps out there. Lets go over the common gap aka: trading gap or area gap.

• The common gap is usually uneventful. A stock going ex-dividend could cause this. These types of gaps are "common" and will fill quickly.



• What does filled mean? The price, after the gap event, will go below the area of the gap.

• These gaps also show avg or low volume.
• These gaps are good but don't expect great trading opportunities to come from them.