Gapping

Volume Spread Analysis Glossary

A bar that opens outside the previous bar's range, used by market-makers to reveal directional intent with particular clarity. Weak gap-ups occur when the market-maker marks prices sharply higher at the open (often on good news) to trigger FOMO buying and catch short-sellers' stops, then distributes into the resulting frenzy; these typically show high volume with the spread narrowing into the close. Strong gap-ups occur when the market-maker is bullish and wants to leap over an old trading range, denying locked-in traders the chance to sell at breakeven; these are accompanied by expanding volume and the market does not fall back.

Sign up free — get all 72 Volume Spread Analysis terms, flashcards & rank tracking →

More Volume Spread Analysis terms

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 89,613+ practice questions, 30,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials