What is Price gaps and why do they occur on charts? Kindly help me as I am seeing these on my chart,what makes them appear on charts?
this may answer the question
Gaps and Gap Analysis [ChartSchool]
but basically no activity is happening…either no trades happen or you have a spoty feed,I can’t diagnose so I’ll let the wise people help with that 
price gaps are banks trading without knowing the price of their competitors. that is the reason why most banks wont trade during weekends , because they dont know the supply and demand conditions of the entire market. it is one of the reasons why most of the gaps are filled within a short period time. Imo, dont trade gaps bigger than 50 pips… it means that some of those banks are determined something is going to happen. it must have been such a big deal that they have decided to trade blindly
Are price gaps the same as charts containing different opening prices from those of the previous day’s closes?
I was in my local library this weekend and found a book called ‘Candlestick Charting Explained’ by Gregory Morris.
In it he describes a daily Bullish Engulfing Pattern as ‘a pattern that forms when the day starts with a gap lower from the previous day’s close before reversing and closing above the previous day’s close’
I was under the probably naive impression that if the GPB/USD closed for example at 1.54160 then it would open the next day at 1.54160?
The chart illustrations in the book contain many candles that open either way below or way above the previous days close…to be honest it’s rather confusing my learning 
Here is one chart from the book
Can anyone set me straight please?
Cheers,
Simon
Hi,
I have just noticed that the charts in the Gregory Morris book are mostly stock and commodity price charts - could that explain all the differences in closing and opening prices because the stock market actually closes every day, whereas forex only closes at the weekend?
If that is the case then his description of candle patterns cant really apply to Forex markets as far as I can see? For example he says an inverted hammer candle must start with a ‘down gap’. None of my charts for currency pairs show inverted hammers starting that way.
Here is a chart I’ve just found on MT4 for Sugar - there is a big gap which I understand being there as it’s the market closing and opening. But have a look at the prices previous to that - the opening prices differ to the previous closing prices on many occasions, whereas they dont with currency pairs. As a newbie this really confuses the chart analysis for me.
Yes, that’s exactly right.
Forex doesn’t really “gap” at all.
(Apart from, arguably, on the Monday morning open of the Asian session, and even that isn’t [I]really[/I] a “gap”, per se, because there’s actually some forex-trading taking place even at weekends when the interbank market is supposedly “closed”.)
Lexys, I salute you, finally somebody listened. 
Now if we can get the other 8 billion people to stop listening to Guru nonsense, we might have the start of something. :45:
The Ever Saluting VIPER
Usually price gaps occur during the market opening session on Monday. This happens because of the transaction settlements happened during the weekend or also may be because of the difference in the demand and supply of the same.
This is my add on question you asked what price gaps are and why it occurs on your chart ? Price gaps are empty spaces you you see between two candlesticks or bars. They take place when a price bar opens far away from the previous bar and shows a space between the open or close showing you that no trades took place in between the last bars close and the current bars open.This might be one the reasons why it occurred and the other might be from the opening of the market from weekends