Alphabet (GOOG) (GOOGL) just scored a major legal win recently when a judge ruled it will not have to divest Chrome. The result? A surge to new all-time highs — 5 in the last five sessions, in fact — fueled by a massive gap up in price.

In last Friday’s Market on Close livestream, John Rowland, CMT, explained what this price action means for traders and investors.

Why Gaps Matter

According to John, price gaps represent the largest imbalance between buyers and sellers. They tell a story about sudden conviction in the market.

The key isn’t just the gap itself; it’s the follow-through price action. If buyers continue to step in after the gap, it validates the move.

In Google’s case:

• The legal overhang created uncertainty.
• The ruling cleared the air.
• Pent-up demand rushed in, driving price sharply higher.

Ultimately, investors were willing to pay more for the same asset they could have bought weeks ago — simply because a major source of uncertainty was removed.

Gap Trading Tips

For traders, gaps can signal big opportunities — but only if managed properly:

• Look for follow-through: Not all gaps stick. Volume and continued buying confirm strength.
• Identify catalysts: Gaps tied to news or earnings often carry more weight.
• Watch for reversals: Some gaps fill quickly as profit-taking sets in.

Bonus: Watch this quick tutorial to learn How to Trade Gaps like a Pro. 

How to Spot Gaps with Barchart

1. Use the Gap Up & Gap Down Screener to instantly find stocks making similar moves.
2. Check interactive charts to see how the stock has reacted to past gaps.
3. Pair with earnings calendars to anticipate catalysts that may cause the next big gap.

Bottom Line

Google’s breakout highlights how legal clarity and pent-up demand can create explosive price action. For traders, gap strategies can uncover opportunities across the market — if you know where to look.

Watch the full clip here:

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