The gap formed when the opening price movement leaves the empty space on the chart. This happens when the high candle on that day is below the low candle from the previous day or when the low candle is above the high candle the previous day.
The gap is usually happened when there is a big news on weekend. A gap in the chart is a blank space between the current trading period and the previous trading period. Gaps usually arise because of an important event such as economic data or financial statements.
For a newbie, it is a very dangerous thing when doing forex trading if you do not know it. therefore a beginner should learn more about forex trading.
We need to be extremely careful with these things and make sure that we get proper education about it. That is the ONLY way we will be able to gain and make money. I always figure it out with demo and that is the only option that we can use.
little I would like to add about the notion of GAP The gap or GAP contained in the price is called an area in the graph, where no transaction has occurred, this pattern is formed due to vacancy, either selling / buying due to overflowing buy / sell orders. Gap formation leading upwards reflects a strong market, while the opposite direction, The gap that leads down reflects a weak market. However they both reflect the potential for price movements that will follow in the future. GAP can be divided into sections, namely: Common, Breakaway, Runaway, and Exhaustion. A. Common GAP Common Gap like this we often encounter, the gaps are immediately closed later. Examples of events gaps that directly closed or closing windows. Common gap usually appear in an atmosphere of price movements in a certain price range or in a restricted area which then experienced very strong pressure to move. Be careful with this type is very good but if in doubt such a movement also provides an opportunity to get a chance. B. Breakaway GAP Breakaway gaps are very interesting. This occurs when the price breaks through a trading range or a restricted area. To understand this gap, one must understand the natural processes of the restrained area. That is the price that moves within a certain price range in some period. The point where the price breakout is a support price as well if it is experiencing a breakout down the point where the new price in going will be the resistance. A good confirmation of trading gap is that you should look closely at how formations are formed. For example, the price of pressure at the point where it has approached support, then you should start to pay attention to this incident. C. GAP Runaway Runaway gap illustrate very clearly that there has been a great deal of pressure that could affect a price movement when prices are sharply moving. A statement from a trader that runaway gap is a measure to decide how long the trend will stop. Theory says that the size of this gap is half of the movement. Although difficult to prove these words, but at least help us to be more vigilant when running transactions. D. Exhaustion Exhaustion gap is a movement where the price is near the end of a downtrend or uptrend. Where there are several times signal indicating that trend will end, one of them is Exhaustion Gap. What distinguishes runaway gaps with exhaustion gap is the notion that these gap are the euphoria of a price movement that can not be continued.
Great job! thank you for you useful information it will help newbie to know more about forex trading.
wow this is great. if only this existed two years ago when i was still a noob but anyway, thanks! this will help newbies for sure.
A gap in the chart is an empty space between the current trading period and the previous trading period. Gap usually arises because of an important event such as economic data or financial statements.
Nice thread. Forex trading is a type of investment that uses foreign exchange, abbreviated as forex, or forex as part of the investment. Along with the existence of online forex trading, forex trading can be done more easily and flexibly.
