Gaps in the Trading Market

One of the major differences between the stock market and a Forex market is the Forex market is open for 24 hours. Trading is constant and only closes during the weekends because of less volume instead of the real close. The end result is you will rarely find gaps on the charts related with Forex. Gap is caused when the opening of a session is away from the earlier close for leaving a real gap on the Forex trading chart. There could be large number of gaps on the charts related to stock market as the Forex market stops exchanging things in the late afternoon and does not open in the morning.

If the earning of a company is released after it gets closed, the opening cost of the next day can be high or also low compared to the earlier close. A news item causing a shift in an alternative of value trading market can cause a gap in the trading chart. In Forex trading market, one cannot notice these gaps as the Forex market remains open and continues the trading. However, one can notice the gaps between the closing price on Friday and Sunday.
The trading of this week is a perfect example as this chart notes the gap as an effect of G7 meeting in the weekend. One can find information on G7 meeting at the site, www.dailyfx.com. This chart also displays that the GBP/EUR opened at a lower rate on Sunday compared to the rate when it was closed on Friday. At the time when you notice a gap on trading chart, the first important thing that the traders will search for is for a trading market to shift back for filling the gap.
When the gaps in a trading market range from 1.2500 to 1.2525 most of the traders start searching for a shift to nearly 1.2500 for filling the space and then reevaluate news and its influences on this trend. We can notice where it is exactly and the things that happened during the previous month which opened the trading market at a high rate than the earlier close and finally moved back in order to fill the space before counting with the particular uptrend.
The gap last weekend is not been filled yet and I suspect that several dealers are using this method in a close manner to find whether these things happen again or not.