A gap is a price area on a chart where no trading occurred, creating a visible break between consecutive candlesticks. Gaps typically occur at market open (Sunday evening for forex) or after major news events. They can be bullish (gap up) or bearish (gap down) and often act as support or resistance levels.
Forex markets close Friday evening. Over the weekend, a major geopolitical event occurs. When markets reopen Sunday evening, EUR/USD opens 50 pips below Friday's close — that is a bearish gap.
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