Opening gap locations

By Scott Andrews
Location. Location. Location. This mantra is just as important to price gaps as real estate.

The opening price gap is the difference between a market’s opening price and yesterday’s close. Where the market opens can provide clues as to whether it might reverse direction and trade at yesterday’s close again today. If the market opens in a certain area below or above the prior day’s close, how likely is it to rebound (or drop) to trade at that price again, filling the gap?

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