What can be considered as price gap?

TraderRASI

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Dear Traders

Please help me to understand the term "price gap". According to definition it is: "Gaps are areas on a chart where the price of a stock (or another financial instrument) moves sharply up or down with little or no trading in between. As a result, the asset's chart shows a "gap" in the normal price pattern." But can the rapid/sharp price moves after the new candle has already opened be considered also as price gaps? For example: new candle opens 15:30:00 with price 100.100 then the price moves are stable for some time but at 15:30:10 it jumps from 100.500 to 100.900, is it price gap or just price movement?
 
Every move where the closing price of the previous candle and the opening price of the next candle aren't connected (by a few pips, of course, they can never be perfect), is basically a gap.
 
Thank you. Do I understand correctly the term "price gap" can be applied only considering the interval between closing and opening candle not the rapid price movements after the candle has opened?
 
You can also have gaps inside a candle. Since the candle only shows open, high, low, and close, there is no information how how many times price went up and down or how many/how big of gaps may have happened.

Only a tick chart will show all the gaps.
 
You can see clear gaps after the weekend, right when the market is opening. Many traders take advantage of these gaps, because there is a saying that "the gaps must be filled" :cool:
 
You can see clear gaps after the weekend, right when the market is opening. Many traders take advantage of these gaps, because there is a saying that "the gaps must be filled" :cool:

I have done some trading in the gaps and i know that if we want to make the maximum amount of profits we have to choose the right currency pair for that :D
 
Might we often watching gap on monday morning after chart updated but not always indeed, usually using small timeframe will clearly if gap occured will seen which one candle like as jump to next candle
 
Might we often watching gap on monday morning after chart updated but not always indeed, usually using small timeframe will clearly if gap occured will seen which one candle like as jump to next candle

At times when we have some big Impact news that is going to come into the markets we will usually see this kinds of gaps and if we are well prepared for it we can reap huge profits also :D
 
price gap is the differnce between the closing price of the previous candle and

the opening price of the next candle if we want to make the maximum amount of

profits we have to choose the right currency pair for that .
 
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