when the market closes at some price and opened at the different price is known as the gap. it indicates the strength of the market. The price difference between today’s opening price and the closing price of the previous days price makes the gap to appear. If after closing of the trading hours a good news is announced then it involves a over night risk . Next day market open with a very high price depending upon the news and this is the associated risk.
gap analysis
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Stock Analysis
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