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Repricing
A gap can form when price moves rapidly from one area to another, leaving a visible reference zone behind.
MARK THE AREACHART EDUCATION
Gaps Explained.
A gap is more than empty space on a chart. It can become a reference area where traders watch how price behaves when it returns.
PRICECONTEXTVOLUMELIQUIDITY
THE BASIC IDEA
See the space.
Read the reaction.
In simple terms, a gap is a price area with little or no trading between two points on a chart. Rather than assuming what price must do next, a trader can mark the area and watch the reaction.
GAP AREA
PRICE
RETURN
WHY TRADERS WATCH GAPS
A location. Not a prediction.
Gap areas can help organize a chart, but the useful question is what the market does around them.
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Reaction
When price revisits a gap, traders can observe whether it rejects, accepts, moves through or pauses around the area.
WATCH PRICE≋
Context
Volume, liquidity, order flow and surrounding price action can add context to what is happening at the gap.
READ THE MARKETIMPORTANT
“Gaps always fill” is too absolute.
A gap may fill quickly, fill partially, remain open, or become less relevant as conditions change. A marked gap is a chart reference—not a guarantee of a future move.
FULL FILLPrice trades through the gap area.
PARTIALPrice enters the area, then reacts.
REJECTIONPrice responds near the gap boundary.
REMAINS OPENPrice does not return to the area.
GAPWhere is the reference area?
PRICE ACTIONHow is price behaving as it approaches?
VOLUMEIs participation increasing or fading?
LIQUIDITYWhere might market interest be concentrated?
CONTEXTWhat does the combined picture show?
PUTTING IT TOGETHER
Don't trade the gap in isolation.
Combining a gap with price action, volume, liquidity and order-flow context can give a trader a more complete view of what is happening around the area.
Explore Order Flow & Liquidity →SEE THE CONCEPT ON A CHART
Watch gaps in live market analysis.
See how chart areas, volume, liquidity and market context can be evaluated together during live trading content.