It is known that gaps occur in the equity markets, but it also occurs in the Forex markets. And gaps, currency trading (Forex gaps) are defined as areas on the trading scheme (graph) where the currency is moving strongly towards the increase or decrease with little or no trading of any trading through them.
Trading on the outline of the Japanese Candles is the gap distance between the large candles in a row. In other words, the gap occurs when the pair jump from the price column to another with a significant difference between the value of the price columns.
More possible causes for the occurrence of gaps is the lack of liquidity, lack of quantity and lack of market participants. In the forex market in particular, usually what happens this type of gaps through the end of the week, and can provide very good opportunities for profitable trading operations, if traders are able to translate the creators of these gaps properly, and then use the information learned from them.
Four types of gaps FX:
Gaps occur as a result of the events of fundamental or technical.For example, a key event that could affect the forex market by forcing a particular pair of currencies at the opening of a very high after the end of the week. Basically, there are four types of gaps are:
Breakaway gaps: patterns occur at the end of the price, and indicate a significant decline or new directions.
Debilitating gaps: occurs near the end of the price patterns, and produces a result of the price a final attempt to reach the highest height or less to decrease.
Gaps in public (common): It is possible to occur at any time, and are not linked to any patterns for the price. These gaps are filled and covered very quickly, meaning that the price in the coming days (a few days to a few weeks) will cover this gap.Continuity gaps (continuing): occurs in the middle of the pattern of price, and usually occur because of market sentiment restore confidence in the fundamental direction for the path of the price.
"Filled with the gap"
