What caused this large gap on the EURUSD monthly chart?

Shamefully, I'm not particularly educated on what price gaps signify. I do however, know that they appear when price makes an extremely sharp move - often outside of market hours - which means that the open and close do not align as they should.

On, daily charts and below - I assume that gaps may commonly exist due to changes in price over the weekend. However, moving up to the monthly timeframe, gaps (as you would expect) become far less common.

This leads me to wonder what could possibly have caused such a large gap on the monthly timeframe here...?

Also, are the last 3 candlesticks on this chart a bearish warning sign? Intuitively, I say this because:

1. Traders who sold into the market before it gapped up, would have been trapped in losing positions during the following period
2. These traders are likely to have liquidated their losing short positions - so they would effectively have to buy into the market. This may have provided the buy orders to fuel the following bullish candle
3. Following this, there may be a lack of buy orders, and people who entered on the right side of the trade may start taking profit. The doji candlestick following these 2 bars may help confirm this theory

Do you you agree with this logic?

The Gap is just because brokers are closed within the week-end while the market isn't. The gap represent the price move within the brokers closure time.

I am talking here about the "week-end" gap. If that was not your question ... then it might be because your platform miss some datas.

Can you give us the details so we can see how that shows up on our charts? Currency pair? Time/date?

Sorry for the late reply. This was on the EURUSD monthly chart.

The opening price for the March candle is around 1.11 in your chart. This price would not happen earlier than March 10. Your gap is a data fault, unless your broker had holidays from March 1 to 9.

Your broker data