This chart shows different types of gap patterns in trading — useful for both stock and crypto markets.
A gap happens when the price opens higher or lower than the previous candle’s close, leaving an empty space (no trading in that range).
Here’s what each pattern means:
1. Reversal Bearish Gap
Description: Price moves up into a supply zone, then gaps down.
Meaning: Signals sellers taking control after a failed bullish push.
Use: Potential short entry.
2. Reversal Bullish Gap
Description: Price moves down into a demand zone, then gaps up.
Meaning: Buyers are stepping in, reversing the downtrend.
Use: Potential long entry.
3. Weekend Bearish Gap
Description: Price closes on Friday, then opens much lower on Monday.
Meaning: Often caused by weekend news/events. Suggests bearish sentiment.
4. Bearish Gap
Description: Gap down during trading days, followed by more red candles.
Meaning: Strong bearish momentum, no immediate recovery.
Use: Continue short positions.
5. Weekend Bullish Gap
Description: Price closes on Friday, opens higher on Monday.
Meaning: Weekend optimism or bullish news.
6. Bullish Gap
Description: Gap up followed by more green candles.
Meaning: Strong bullish continuation signal.
7. Bullish Liquidity Run Gap
Description: Price dips into a liquidity area (stop hunts), then gaps up sharply.
Meaning: Big players remove weak sellers before pushing price up.
8. Bearish Liquidity Run Gap
Description: Price spikes up into a liquidity zone, then gaps down (fake breakout).
Meaning: Trap for buyers before dropping price.
9. Gap Filled
Description: Price creates a gap, then later returns to “fill” it.
Meaning: Many gaps get filled because the market rebalances supply and demand.
