What is gap in candlestick?
- A gap is an empty space within a price chart between the two neighboring candlesticks.
- Gaps occur when the following candlestick opens at a distance from the previous candlestick closing price. This may happen if the market’s view of the price rapidly changes and there’s a sudden influx of buy/sell orders.
- A gap is defined as an unfilled space or interval. On a technical anlysis chart, a gap represents an area where no trading takes place. On the Japanese candlestick chart, a window is interpreted as a gap.
- In an upward trend, a gap is produced when the highest price of one day is lower than the lowest price of the following day.
- In a downward trend, a gap occurs when the lowest price of any one day is higher than the highest price of the next day.
- This indicator automatically detects gaps and plots them as Candlestick.
- Indicator Provides option to change the color of this Gap Candle.