Gap fill

WHAT IS A GAP ?

A gap is the difference between today’s opening price and yesterday’s closing price.

Types of gaps

• Gap up: A gap up is when price today opens higher than yesterday’s closing price

• Gap down: A gap down is when price today opens lower than yesterday’s closing price>

  

WHAT IS A GAP FILL AND HOW DO THEY WORK ?

• A gap fill is when price today touches yesterday’s closing price. Here’s how they work for gaps up and down:

Gap up that fills: this is when price opens higher than yesterday’s close and retraces back down to touch yesterday’s close at some point today.

Gap down that fills: this is when price opens lower than yesterday’s close and retraces back up to touch yesterdays’ close at some point today.

What’s a gap not filled?

• A gap that doesn't fill is when price today never retraces back to yesterday’s closing price. It’s important to note that this only counts for today – if price doesn't touch the previous close today, then today counts towards not filled even if it retraces to that level in 4 days. We only consider gap the day it’s formed .

Gap up not filled: this is when price opens higher than yesterday's closing price, and does not reach yesterday’s closing price, during today’s session.

Gap down not filled: this is when price opens lower than yesterday’s closing price, and does not reach yesterday’s closing price, during today’s session.

FUTURES, FOREX AND CRYPTO GAPS

This is where gaps by session come in, it’s very important that you understand what session you’re looking at! It all starts with the session you have selected, you can see in the screenshot below, i have the NY session selected, and that means i’m looking at gaps between the NY sessions.

When you have a session selected, you are only looking at the data within that session and ignoring the data outside of it. In the screenshot directly below, you can see I’m looking at ES in the New York session. The blue boxes show the start and end, and high and low of the NY session – you can get this by getting our TradingView indicators, it’s called the market sessions indicators. Click here to see how to access our TradingView indicators (TRADING VIEW ACCESS PAGE)

So let’s say you have the NY session selected – your new “day” is the price action just in the NY session. So your open, high, low, and close of the day, is only between 9:30AM ET & 4PM ET – if you change your session the open, high, low, and close will definitely change.

Now that you understand how the sessions work, let’s apply the gaps to the sessions.

To start, you mark out previous session’s close (in the red), then today’s open (in blue), that is the gap. Today’s open is lower than yesterday’s close, that’s a gap down, if it’s higher, that’s a gap up. Remember, we’re always looking from one session to the next.

Here’s an example of why looking at sessions is so important:

This is the same day as before, but switched over to the London session. Now, instead of looking at the NY open and close, I am looking at the London open and close to see what the gap is between London sessions.

In this case, you can see there’s a gap up in the London session because price opened above the previous London session.

Keep in mind, it’s the same day, just looking at different sessions and now the scenario is completely flipped.

Now that you know what the Gap fill report is, lets look at the five different types : Standard, by size, by weekday, by close and by spike.