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The difference between the previous close and current open is Gap.
A GAP is visible price difference between the previous day highest/lowest price with the current day lowest or highest price.
a candlestick doesnt overlap even a bit of previous days candlestick therefore forming a gap between the two trading periods. It can be identified as non trading period or a very high difference between open and close price between two trading periods.
The difference between the previous day close and the next day open if the price is significant either way then a gap forms and based on the direction we can call is bullish or bearish and based on the location where it occurs in a trading range if can be classified into 4 different gaps and in candlestick patterns analysis when previous day closing is 100 and next day the open price is 115 so the difference between the previous day closing and today’s opening is called gap.
If a gap is seen between the previous candle stick and latest candle stick, it is called as gap.
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