Gap - common gaps

Definition

A common gap is a price gap found on a price chart for an asset. These occasional gaps are brought about by normal market forces and, as the name implies, are very common. They are represented graphically by a non-linear jump or drop from one point on the chart to another point.

Common gaps tend to be partial gaps and occur on a more frequent basis due to normal trading activity.

In general, there is no major event that precedes this type of gap. Common gaps generally get filled relatively quickly (usually within a couple of days) when compared to other types of gaps.

Common gap