Professional and novice gap comparison tool

Gap comparison5 source examples
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Reversal & extension01 / 03
01

Professional gap

Prioritize

Selling is interrupted at the open

A gap clears the recent high and the prior red bar, then starts a new advance.

Daily IllustrativeD+21O 22.93H 23.18L 22.33C 22.54
18.0020.0022.0024.00Ends D+21Recent resistanceGap dayVOLD-69D-40D-20D0D+20D+40
20 SMA200 SMARecreated example 01 · Source p. 2

D0 = gap day. D-1 is the previous session; D+1 is the next.

Chart guide

Each candle represents one trading session, not a calendar day. SMA means simple moving average. The 20 SMA averages the last 20 session closes; the 200 SMA averages the last 200. Both use illustrative prices, including reconstructed earlier closes. Hover to inspect prices. Click, tap or use arrow keys to move the linked replay.

After Source ends D+21

The first pullback holds above the old range

The advance is uneven, with pullbacks and wicks. The change matters because price continues to build above the gap.

02

Novice gap

Caution

A large gap arrives after the move

Four rising bars lead into a much larger gap that sells off from the first session.

Daily IllustrativeD+39O 16.17H 16.45L 16.06C 16.31
1618202224Resistance, assumedGap dayVOLD-69D-40D-20D0D+20D+40
20 SMA200 SMARecreated example 02 · Source p. 5

D0 = gap day. D-1 is the previous session; D+1 is the next.

Chart guide

Each candle represents one trading session, not a calendar day. SMA means simple moving average. The 20 SMA averages the last 20 session closes; the 200 SMA averages the last 200. Both use illustrative prices, including reconstructed earlier closes. Hover to inspect prices. Click, tap or use arrow keys to move the linked replay.

After D+39

A pause and bounce cannot restore the high

Price consolidates, drops, rebounds, then rolls over again. The full decline contains several different rhythms.

D-69Gap day · D0D+39
D+39Linked

Pro gap checklist

Daily context
  1. 01
    Just above nearby resistanceClear the recent level without opening too far above it.
  2. 02
    Above a wide red barFresh sellers are caught on the wrong side of the open.
  3. 03
    Daily trend shiftThe gap can interrupt a decline or break out of a base.
  4. 04
    Relative strengthStronger than the broader market. Useful, but lower priority.
Behind the move

Who could buy?

  • Trapped shortsBuy to cover
  • Yesterday’s sellersWant back in
  • ProfessionalsSpot the shift
3 examples

Two trend shifts. One base break. All clear recent resistance.

Entry & context notes

Test the daily context first. A gap with the trend can qualify if price is not overextended. Relative strength is secondary.

Sami describes entering early, at the open or through a pattern, avoiding repeated trades, and considering a hold through the session.

Find an entry pattern

Novice gap checklist

Daily context
  1. 01
    Into prior resistanceA weekly level may be outside the daily chart’s view.
  2. 02
    Above a wide green barThe prior session already made a large move up.
  3. 03
    Above an extended movePrice is stretched from its averages before the open.
  4. 04
    No relative strengthThe stock is moving with the market, not outperforming it.
Behind the warning

Two ways to get trapped.

Weekly ceiling

Small gap. Extended rally. Resistance overhead.

Extension trap

Four rising bars. Far above the 20 SMA.

Check first

What’s overhead? How far has price already run?

Source assumptions

Weekly resistance is assumed; its exact level is illustrative. The extension example also assumes resistance and a simultaneous market gap.

A larger gap after an extended move can strengthen the warning. Both examples struggle to hold, but do not predict every gap’s outcome.

5 examples reconstructed from Sami’s material. Illustrative prices, SMAs & volume, not historical market data.

More gaps from Sami: bullies, buries and island reversals