Gap Up and Gap Down terminology | Forex Factory

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Gap Up and Gap Down terminology

  • #1
  • First Post: Feb 11, 2012 4:24am Feb 11, 2012 4:24am
I keep reading a reference to a Gap Up day or Gap Down day. I have searched but not been able to find what it means. Can someone please tell me?
Thanks
  • #2
  • Feb 11, 2012 7:25am Feb 11, 2012 7:25am
Quoting digf
I keep reading a reference to a Gap Up day or Gap Down day. I have searched but not been able to find what it means. Can someone please tell me?
Thanks
That applies to markets that close every day.

If the open of the day is higher than the close of yesterday, then the market gapped up.
If the open of the day is lower than the close of yesterday, then the market gapped down.
  • #3
  • Feb 11, 2012 8:15am Feb 11, 2012 8:15am
Quoting Custos
That applies to markets that close every day.

If the open of the day is higher than the close of yesterday, then the market gapped up.
If the open of the day is lower than the close of yesterday, then the market gapped down.
Custos

Thanks, that's been puzzling me for a while.
  • #4
  • Feb 11, 2012 9:54am Feb 11, 2012 9:54am
The gap can also occur to an open market after a big surprise in news announcement like during NFP, surprise central bank rate change, central bank intervention etc.

The explanation is more like a price on a chart leaves no trailing price bars as to the price it is now. (up or down)

The difference from what price was before the jump is commonly called a "gap" because there's no trail to show how the price got to where it is now.

If you look real close to the 1 min chart you will find these gaps can occur quite often.
  • #5
  • Feb 11, 2012 11:11am Feb 11, 2012 11:11am
Quoting pip_seeker
The gap can also occur to an open market after a big surprise in news announcement like during NFP, surprise central bank rate change, central bank intervention etc.

The explanation is more like a price on a chart leaves no trailing price bars as to the price it is now. (up or down)

The difference from what price was before the jump is commonly called a "gap" because there's no trail to show how the price got to where it is now.

If you look real close to the 1 min chart you will find these gaps can occur quite often.
well i think the gap when news release is not as much important like the gap at the weekend just my 2 cent
  • #6
  • Sep 8, 2013 3:56am Sep 8, 2013 3:56am
Quoting FxViet
{quote} well i think the gap when news release is not as much important like the gap at the weekend just my 2 cent

you are completly wrong
Weekends Gaps or Usual Gaps you see in Charts are not important they are total craps bullshits these are nothing !
But Gaps in Live markets Are The reall Gaps in Price
You Must Love CandleSticks
  • #7
  • Sep 8, 2013 5:46am Sep 8, 2013 5:46am
Quoting pip_seeker
The gap can also occur to an open market after a big surprise in news announcement like during NFP, surprise central bank rate change, central bank intervention etc. The explanation is more like a price on a chart leaves no trailing price bars as to the price it is now. (up or down) The difference from what price was before the jump is commonly called a "gap" because there's no trail to show how the price got to where it is now. If you look real close to the 1 min chart you will find these gaps can occur quite often.
quite true,i developed a system on the ftse100 using 1 min charts and the gaps very small often less than 1 total pip,but it has merit if combined with market sentiment.i found after 2 years of recording every gap that a pattern in price can be found.the principle is similar to the behavour of stocks were gaps have meaning.i found that as price for example gaps very often at the begining of a trend then becomes more stable and as it peaks it gaps up often a coiple of pips with exuastion.then reverses and repeats.if all gaps are not filled then the strenght of the uptrend is more likely to continue.lots of information in those little gaps.95 % of the time when sentiment with conviction changes price will fill all the way back to the early gaps from begining of trend.the best way to trade this is with options ect
  • #8
  • Sep 8, 2013 5:47am Sep 8, 2013 5:47am
Quoting AmirShahiN
{quote} you are completly wrong Weekends Gaps or Usual Gaps you see in Charts are not important they are total craps bullshits these are nothing ! But Gaps in Live markets Are The reall Gaps in Price

very true Amir,

in fx

thats were the money is,the gap in price between the interest.
  • #9
  • Last Post: Sep 8, 2013 6:34am Sep 8, 2013 6:34am
Quoting diceman555
{quote} very true Amir, in fx thats were the money is,the gap in price between the interest.
tnx Diceman You are One Of the Few guys here That really know Somethings
Cluster of True Gaps are What That causes Price Retrace in Future
You Must Love CandleSticks
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