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Glossary G-J

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Gap

A gap is a space in a stock chart caused by the stock opening significantly higher than yesterdays high or significantly lower than yesterdays low. This can often increase the momentum and volatility of the stock. A gap is often caused by a stock not representing the true value of a company and therefore the share price gets significantly adjusted.

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I

Indicator

An indicator is a mathematical formula that aims to help traders decide whether to buy or sell a stock. There are several indicators, the most famous probably being the MACD and moving averages.

Industry

The stock market is split up into several sections called industries. Each stock is allocated an industry. This helps analysts identify which industries are performing better than others.

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