A gap is a price chart break that occurs in the market when the price of an asset changes abruptly over a short period, leaving an empty space between consecutive bars or candles. Such phenomena can be caused by news, economic events, or strong market reactions. In the cryptocurrency world, gaps are particularly important, as crypto assets are subject to high volatility.
Traders often use gaps to analyze market sentiment and potential price movement directions. Gap strategies include catching reversals and expected gap closures. The main principle is that the market often returns to the previous price level, filling the gap. However, it is important to remember that such strategies require quick reactions and understanding of the current market conditions.