Why does a stock gap so much?

Discussion in 'Technical Analysis' started by Bullz n Bearz, Jul 14, 2007.

  1. Here's an example of stock symbol, TDK:

    Shot at 2007-07-14

    What are the mechanics behind all these gaps? Why do they happen?

    PS: This stock DOES get a lot of volume per day so I don't know if volume is the reason here.
  2. TDK is a Japanese company that trades on the Nikkei. The shares that trade in the US are ADR's. When it opens for trading in the US it adjusts to whatever happened to it in Japan.

    The average daily volume of this on the NYSE is 5100 shares a day, hardly what anyone would consider good volume.
  3. Thank you for this :)