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A gap is a price area on a chart where no trading occurred, creating a visible break between consecutive candlesticks. Gaps typically occur at the weekly open (Sunday evening New York time; 00:00 Monday server time for forex) or after major news events. When a market gaps, pending orders, including stop losses, execute at the first available price, which can be far from your level. They can be bullish (gap up) or bearish (gap down) and often act as support or resistance levels.
Forex markets close Friday evening. Over the weekend, a major geopolitical event occurs. When markets reopen Sunday evening, EUR/USD opens 50 pips below Friday's close — that is a bearish gap.
