A gap in the price is exactly what it sounds like – a gap in which there is no trade, leaving blank space between two adjacent candles or bars. This doesn’t occur on line charts because they simply link one closing price to the next.
In the case of candles and bars, if the low of the first bar/candle is higher than the high of the next day’s range, or alternatively the high of the first day’s range is lower than the low of the next day’s range, then this creates an apparent gap in traded ranges. In this guide we explore different types of gapping and strategies for response.