If you've been trading stocks, you've probably noticed sudden "gaps" between candle closes. But in the 24/7 world of crypto, these gaps almost never appear. Why is that?
đĄ What Is a Gap in Forex?
A gap happens when there's a sudden difference between the closing price on Friday and the opening price on Sunday night/Monday morning. Picture it like this: the market closed at $1.1000 on Friday, but opens at $1.0950. Thatâs a 50-point gap â and no candles were printed in that missing space.
Why does this happen?
Even though retail trading platforms "sleep" over the weekend, big players (banks, funds) are still placing orders behind the scenes. News or macro events over the weekend also create expectations. When the market reopens, it reacts all at once, causing a jump â or gap.
đ Why Doesnât This Happen in Crypto?
Because crypto never sleeps. Bitcoin and other digital assets are traded 24/7, 365 days a year. So instead of price "jumping" after a break, the market constantly adjusts.
But that doesnât mean imbalances donât exist.
đ Enter FVGs â Fair Value Gaps in Crypto
In crypto (and some institutional trading models), there's a concept called Fair Value Gap or FVG. This refers to a candle zone where price moves so fast that it skips fair trading activity. These zones are usually formed by one big candle that "skips" over previous price ranges.
Itâs like a mini gap, except it happens inside the chart, not between sessions.
Traders believe these zones are where liquidity was not fully processed, and price often returns there later to âfillâ that space â not because charts need to be âcleanâ, but because market makers need to rebalance their positions.
đ€ Algorithms Are Behind It All
Don't imagine traders manually clicking âBuyâ and âSellâ on thousands of assets. Instead, algorithms â sophisticated bots â scan order books, fill gaps, trigger stop-losses, and seek out imbalance zones 24/7. Whether it's a Forex gap or a crypto FVG, itâs all about liquidity, volume, and market structure.
