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Markets › Alibaba › Gap down

US stock market · price-structure setup

Gap down on Alibaba

On Alibaba the gap down showed up 320 times. The target came first 42% of the time, the stop 53%, and 4% went nowhere within 12 candles.

Counted on Alibaba: daily candles from January 2015 and hourly candles from October 2024.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
Daily15644%54%1%
Hourly16440%52%7%

Alibaba against the rest

ChartsFoundTarget firstStop firstWent nowhere
Alibaba32042%53%4%
All US stock market charts4,69536%61%3%
Every market10,85636%61%4%

Year by year

YearFoundTarget firstStop first
2016425%75%
20181233%67%
20191030%70%
20201718%76%
20211753%47%
20221250%50%
20231947%53%
20243148%45%
202510338%55%
20269349%46%

The last 8 times

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.

What the gap down is

Price opened below the previous candle's low. It jumped down between the two candles.

Imagine a shop that shuts at night. While it is closed, bad news spreads about a toy, so when the shop opens, the very first price is already below anything paid the day before. On a chart, a candle that starts below the bottom of the candle before it is called a gap down.

The full gap down lesson, video and quiz ›

Other patterns on Alibaba

Inside bar · Gap up · Stochastic bullish cross · Stochastic bearish cross · Spinning top · MACD bullish cross · Doji · MACD bearish cross · RSI overbought drop · EMA 9/21 bullish cross · all of them

The gap down elsewhere

Dow Jones · S&P 500 · Nasdaq 100 · Tesla · Broadcom · Oracle · Nvidia · Microsoft · Meta · Intel · Sensex · Nifty 50 · Nikkei 225 · Sony

Questions

How often does the gap down work on Alibaba?

In 320 cases on Alibaba, the target (1.5 × ATR) came before the stop (1 × ATR) 42% of the time and the stop came first 53%; 4% went nowhere within 12 candles.

What is the gap down?

Price opened below the previous candle's low. It jumped down between the two candles.