Could somebody please enlighten me how to react to gap up/gap down in FX?

Good day everyone. In my few months of learning FX trading, this is the very first time that I personally witnessed a gap up in price action.

Would you guys/gals enlighten me so to as the cause of these gap up’s/downs; and even how to react to them?

Thank you.

My chart for CAD/JPY doesn’t show a gap, just a bullish candle up to the high price. However, some brokers suspend trading at significant market timings, such as the London stock market open - its possible therefore that this is an “artificial” gap, only created because of the broker interrupting service to their clients, not a real gap in the underlying price action.

I would ignore it.

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There is no price gap. That’s an issue on TradingView platform. Their engineers are already working on it. Have a look at the same chart on MetaTrader or cTrader.


I also saw the notification that there was an issue on TradingView.

I also don’t see a gap in timeframes higher than 1H.

Didn’t know that brokers do that. Thanks for letting me know!

You do get gaps in Forex, usually at the beginning of a new trading day or at extremes of volatility, although gaps are far more common in stocks and shares. It is usually a sign that the market will go for a while in the direction of the gaps (i.e it gaps up or down). This doesn’t always happen though. People talk about “exhaustion gaps” which are low volume gaps at the end of a trend when the last of the dumb money is having a final push, which heralds the market changing direction. But it’s always quite a relief when I see a gap going in the direction of my trade. I’m sure people have written books about gaps.