What is price gap in Forex?

 

Do you have any idea what is price gap all about?

 
The price gap appears on the chart when the closing and the opening prices of two neighboring candles does not overlap and it represents an area when no trading takes place.
 
Greetings:
FX price gaps appears in two cases:
* Friday closing and Monday opening - most common happened
* during significant news release (when the new value is far away from expected)
and ...
* in case of technical issue in the streaming pricing of your broker :) - just a joke
 
FrancoisT:
Greetings:
FX price gaps appears in two cases:
* Friday closing and Monday opening - most common happened
* during significant news release (when the new value is far away from expected)
and ...
* in case of technical issue in the streaming pricing of your broker :) - just a joke
These are only the common gaps, the most obvious ones. The other gaps are smaller but more interesting, e.g. when a SHS is ready and the price jumps over the neckline. Greedy little money makers. 
 
Often look on monday morning occur gap on certain pair but not always, might on this condition on saturday and sunday occured transaction and not recorded on data center, so on monday after broker open sometime gap occured, and usually after gap then movement price will recover the gap although not always
 
Good comment on price gaps. In Forex, price gaps usually happen on Sunday opening, since during the weekdays the Forex market is open 24 hours.
 
Most common gaps I know are the same – during market opening/closing or during news. Or unexpected Gaps like krelian99  mention “…when a SHS is ready and the price jumps over the neckline…”  :)))) and the one that
FrancoisT sais “…in case of technical issue in the streaming pricing of your broker…”
It is not a joke actually I’ve been seeing suck gaps it magically disappear once you contact the support team :D
 
Let me be the smarty-pants 8-)  Just randomly picked charts.

Live account (MT4)

Demo account with different broker (MT5) and different data feed


There are more, I know. The bigger gaps are good for scalping ;)
But they are on M15 as well, more useful for trend followers.

My Live account again.


Have fun
Reason: