trading gap

In the dynamic realm of forex trading, grasping market intricacies is pivotal for success. One such phenomenon that intrigues traders is the presence of gaps in price charts. These gaps, representing discontinuities between the closing and opening prices of consecutive trading sessions, harbor valuable insights into market sentiment and prospective trading avenues.

Price gaps are a common phenomenon in forex trading, characterized by a significant difference between the closing and opening prices of an asset. These gaps can occur due to various factors, including changes in investor sentiment, market liquidity, and the release of important news. Understanding the types, causes, and implications of price gaps is crucial for traders looking to capitalize on these market opportunities and manage associated risks effectively.

All traders occasionally encounter the phenomenon of price gaps and might get confused. Gaps are encountered in all financial markets and most often appear on Monday, at market opening. In this article, we will explain what a gap is, what types they are, and why they appear.