Definitions
In plain terms
It captures the lower-side discontinuity candidate used by True Range.
Technical
The component is the absolute value of L_t minus C_{t-1}, in price units, and is unavailable when no valid previous close exists.
Scope
Its magnitude is nonnegative and does not preserve whether the current low is above or below the previous close.
Formula
Low gap = absolute(current low - previous close)G^L_t=|L_t-C_{t-1}|| Symbol | Meaning | Unit |
|---|---|---|
L_t | current low | price units |
C_{t-1} | previous close | price units |
Output unit: price units
Examples
- A reviewer traces Previous-Close-to-Low Gap from aligned inputs through its first-ready row and edge cases before accepting a displayed value.
Common misconceptions
- Its magnitude is nonnegative and does not preserve whether the current low is above or below the previous close.
Concept relationships
Prerequisites
Required by
Where this concept is used
Evidence and governance
- True Range TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: TA-Lib leaves the first row unavailable; the local D07 contract explicitly uses a high-low fallback.
- Reviewed by
- fintech-builder-batch-009
- Last reviewed
- 2026-07-30
- Next review
- 2027-07-30
- Record status
- published