Gaps are areas on a chart where the price of a stock (or another financial instrument) moves sharply up or down, with little or no trading in between. Gap refers to the space between “where we are” (the present state) and “where we want to be” (the target state).
Gaps can provide clues about the price movement. If you read the breakup from price continuity you will find that something important has happened to the fundamentals or the psychology of the crowd that has triggered this market movement. Since, the inception of technical analysis, these “holes” have always been in the limelight of the chartist.