Gap in Forex
A clear definition of Gap, with practical context for reading markets and making better trading decisions.
Definition
A gap is an area on a price chart where the next period begins at a price that is separated from the previous period's trading range, leaving little or no trading activity between the two prices on the chart.
How Gaps Appear
Gaps are common in markets that close and reopen, such as stocks and futures. In spot forex, visible gaps are most often associated with the weekend or an interruption in liquidity because the market trades continuously during the weekday session.
What a Gap Tells You
A gap shows that the market repriced between two periods. It can reflect news, order imbalance, or a change in expectations while normal trading was unavailable or thin. The size and location of the gap matter more than the empty space by itself.
A Gap Does Not “Have to Fill”
Price may later revisit the gap area, but there is no rule that every gap must be filled. Treating gap fill as guaranteed turns a chart observation into an unsupported prediction.
Key Takeaway
A gap records a jump between trading periods. It is evidence of repricing, not a promise that price must return to the skipped area.
Practical forex example
Why Gap matters
Understanding Gap helps traders interpret market information, plan decisions, and manage risk with more context.
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