Gaps appear when there is a very strong shift in the market's prevailing trends, whether up or down, in favour of a currency or other asset. Gaps can appear on any time frame and at any time, but because the forex market is so liquid, they rarely do. Candles are typically formed at the beginning of a new trading week. A sudden and sharp change in market sentiment causes buyers and sellers to struggle to enter or exit trading positions, resulting in upward and downward price gaps, as in the case of a sudden positive shift towards one of the trading positions. Currencies and a large number of forex traders have selling positions on this currency; these traders will compete with one another to get out of those deals, resulting in a large price gap on the upside. Similarly, if there is a sudden negative shift towards a currency and forex traders have Purchasing positions, the first step they will take is to try to get out of those deals as soon as possible, which intensifies selling operations and leads to a strong displacement of the price, and thus the emergence of a downward gap that occurs. Sharp shifts in investor sentiment are usually caused by unexpected political and economic events. When British Prime Minister Theresa May announced in April 2017 that early parliamentary elections would be held, most market participants expected the Conservative Party to win massively, but the wind did not blow as expected. Ships crave, and May's party loses its parliamentary majority, resulting in a divided parliament. These unexpected developments weakened investor confidence in the British pound, resulting in a bearish gap on the British currency pairs.

Price gaps form in financial markets when there is a significant difference between the closing price of one period and the opening price of the next. This can happen for several reasons:

1. News and Events: Sudden announcements like earnings reports, economic data, or geopolitical events can drive prices sharply higher or lower before the market opens.

2. Low Liquidity: During off-hours or low-volume trading sessions, fewer participants can cause larger price movements between closing and opening.

3. Market Sentiment: Changes in sentiment, like during weekends or after market hours, can lead to substantial buying or selling pressure, resulting in gaps.

These gaps reflect the market's reaction to new information or imbalances in supply and demand.