A gap is an area discontinuity in a security's chart where its price either rises or falls from the previous day’s close with no trading occurring in between. Gaps are common when news causes market fundamentals to change during hours when markets are typically closed, for instance an call after-hours.
-A gap is a discontinuous space in the price chart of an asset or security, often occurring between trading hours.
-There four different types of gaps – Common Gaps, Breakaway Gaps, Runaway Gaps, and Exhaustion Gaps - each with its own signal to traders.
-Gaps are easy to spot, but determining the type of gap is much harder to figure out.
What Does A Gap Tell You?
Gaps typically occur when a piece of news or an event causes a flood of buyers or sellers into the security. It results in the price opening significantly higher or lower than the previous day’s closing price. Depending on the kind of gap, it could indicate either the start of a new trend or a reversal of a previous trend.
Gapping occurs when the price of a security or asset opens well above or below the previous day’s close with no trading activity in between. Partial gapping occurs when the opening price is higher or lower than the previous day’s close but within the previous day’s price range. Full gapping occurs when the open is outside of the previous day’s range. Gapping, especially a full gap, shows a strong shift in sentiment occurred overnight.
When you consider this bull market is completely different because of institutional investing and 900 BTC mined/day and also printing usd and pandemic situation it is more likely price will not get to such a low level. Use gaps as one of keys to evaluate your decisions.