The Formation Principle and Market Impact of Gap Gap

Gap gap refers to two adjacent trading sessions, the closing price and the opening price appear obviously discontinuous price range.

This kind of price gap usually occurs during market breaks, such as at night or on weekends. A typical example is when a company suddenly releases a major bearish news over the weekend, which may cause Monday's opening price to be significantly lower than last Friday's closing price.

This shows that the generation of gap gaps often results from sudden shifts in market sentiment, usually driven by sudden changes in fundamental factors.

These drivers include events that affect a wide range of markets, such as sudden economic data, industry policy changes, or other high-impact news. For traders who follow global markets, such ashycmOn platforms like foreign exchange, it is particularly important to understand the impact of these events on price gaps in a timely manner.

It is important to note that gap gaps do not only appear after a long market break. Similar price discontinuities may also be observed on shorter time-period charts.