Price gaps are sharp price movements, either upward or downward that create a gap in the normal price pattern. This can be seen on the chart as a gap or space between the previous candle and the next.
How and when does a gap appear:
Market opening time after the weekend or after a public holiday.
When the market opens, and most often in the first minute of the market opening, it is caused either by some political news such as military maneuvers or tensions between two large countries, or by economic news.After the release of economic news and reports.
In this case, the price gap may have been formed due to the shock or surprise resulting from the new or economic report, which caused a state of tension and confusion among traders.Artificial price gaps.
This price gap or price jump results from the actions of market makers and banks, who attempt to eliminate certain positions for some traders and force them out of the market. Therefore, we always advise traders to ensure their contract sizes are appropriate for their capital to avoid any surprises.