wait to buy, page-13

mitta3,

Can I please get some confirmation from you as to how "gaps" work. Lets just say for arguments sake the following scenario occurs:

1. The sp opens at .60, reaches a high of .70 but closes at .65.

2. The sp the following day opens at .68, with a low of .67 and closes at .75.

Now, i'm confused as to whether the gap is between the previous days closing price and the following days opening OR is it between the previous days high and the following days opening which if this is correct means there is no gap.?

I hope i've explained myself clearly and you understand what i'm trying to say. I thought that gaps are created between the closing price and the following days opening, but some others seem to have a different view. Any help on this would be appreciated:)