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 uppichle close se upar khulna
When a stock or index opens well above the previous session's close, leaving an empty space on the chart, usually on overnight good news.
A gap up happens when the opening price is clearly higher than the previous close, leaving a visible gap on the chart. Common causes are strong results, a positive global cue, or an order or approval announced after hours. Suppose Nifty closed at 24,000 and opens at 24,180 after US markets rallied overnight; that is a 180-point gap up. Holders of long positions benefit immediately, while anyone short faces a loss beyond their stop. For new entries, gap ups are tricky. Buying the open chases a move that has already happened, and a fair number of gaps get sold into during the first hour. Some traders wait for a pullback that holds above the previous close, then enter with a stop under it. Whether a gap continues or fills depends on volume and follow-through, which you can only judge as the session unfolds.
Related terms
Lessons that use this term
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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.