Gap (ช่องว่างราคา)

A Gap happens when the opening price of a new candle is clearly different from the closing price of the one before it. On the chart, you see an empty space between the two candles. Price did not move smoothly through the middle; it jumped.

Gaps usually appear when the market is closed and news arrives. That is why they are common at the Monday open in forex and gold, after the weekend break. In stocks, they often appear at the start of a new day, for example after a company reports earnings overnight.

• Gap Up: the new price opens above the previous close.
• Gap Down: the new price opens below the previous close.

Example: Gold closes on Friday at 2,000. Over the weekend, big news comes out. On Monday it opens at 2,010. The Gap is 10 points, and no trades happened between 2,000 and 2,010.

Why it matters: A Gap can make your order fill at a different price than you expected. Say you have a Buy position with a Stop Loss at 1,995, and price gaps down to 1,985 on Monday. Your Stop Loss cannot be filled at 1,995 because that price never traded. It will be closed near the first available price, so the loss can be bigger than planned. This is called slippage.

Common beginner mistake: Thinking a Stop Loss guarantees your exit price. Around weekends and major news, a Gap can jump right over it. Keep your position size small enough that an unexpected jump does not hurt too much.