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Markets › Dow Jones › Gap down

US stock market · price-structure setup

Gap down on Dow Jones

On Dow Jones the gap down showed up 88 times. The target came first 32% of the time, the stop 66%, and 2% went nowhere within 12 candles.

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

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
Daily3030%70%0%
Hourly5833%64%3%

Dow Jones against the rest

ChartsFoundTarget firstStop firstWent nowhere
Dow Jones8832%66%2%
All US stock market charts4,69536%61%3%
Every market10,85636%61%4%

Year by year

YearFoundTarget firstStop first
2018425%75%
2019425%75%
2020838%62%
2024425%75%
20253526%69%
20262941%59%

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 Dow Jones

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

The gap down elsewhere

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

Questions

How often does the gap down work on Dow Jones?

In 88 cases on Dow Jones, the target (1.5 × ATR) came before the stop (1 × ATR) 32% of the time and the stop came first 66%; 2% 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.