VideoCharts7 min read
What the RSI indicator actually tells you (and what it doesn't)
RSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
Technical analysis
Gap downpichle close se neeche khulna
When a stock or index opens well below the previous session's close, leaving an empty space on the chart, usually on overnight bad news.
A gap down occurs when the market opens at a price clearly below the previous close, so the chart shows a blank space between yesterday's candle and today's. It usually follows bad overnight news: weak results, a global sell-off or a regulatory action. If SBI closed at ₹800 and opens at ₹775 after poor quarterly numbers, that is a ₹25 gap down. Gaps matter because a stop loss placed at ₹790 does not fill at ₹790; it triggers at the open and fills near ₹775 or lower, a much bigger loss than planned. This is the main overnight risk of holding leveraged positions. Some gaps get filled during the day as price climbs back; others begin a further decline. Traders often wait for the first fifteen or thirty minutes to see whether buyers defend the open before acting.
Related terms
Lessons that use this term
VideoCharts7 min read
Candlestick patterns for beginners: the five worth learning first
A candle is four prices drawn as one shape. Learn to read the shape first, then five patterns that only mean something at the right place on the chart.
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Support and resistance: how to find the levels that matter
Support and resistance are the prices where the market has changed its mind before. Here is how to find the ones worth marking and how to use them with a stop.