A price area at the open where no volume is traded between two sessions, typically reflecting imbalance from the prior close; must be interpreted in context (gap and go, or gap fade).
A price area at the open where no volume is traded between two sessions, typically reflecting imbalance from the prior close; must be interpreted in context (gap and go, or gap fade).
Gaps represent overnight order imbalance and often provide important context for the trading session. Unfilled gaps create "windows" in the profile that frequently attract price in future sessions. Small gaps within previous day's range often fill, while larger gaps outside prior structure may indicate strong continuation (gap and go) when supported by follow-through volume.
