Price gap, or gap, in trading refers to the discrepancy between the prices of an asset at the close and open of two adjacent trading sessions. Gaps can be both upward ( during a rise in prices ) and downward ( during a fall in prices ). They represent both a risk and a potential opportunity for market participants.

Some traders use gaps as indicators for making trading decisions. For example, if the price of an asset opens significantly higher than the previous close (, a "bullish gap" ) is formed, which may signal strong demand and the likelihood of further rise. Conversely, if the price opens significantly lower than the previous close (, a "bearish gap" ) is formed, which may indicate a predominance of supply and the likelihood of continued decline.

After the formation of a descending gap, the market usually shows the following characteristics:

1. Continuation of the trend: If a descending gap has formed in the direction of the current trend, the market often continues to move in that same direction. That is, in a descending trend before the gap, further decline is likely.

2. Retracement: Sometimes after a descending gap, a corrective movement may occur. This means that prices may temporarily rise, partially closing the gap, and then return to the main direction of movement.

3. Sign of weakness: A descending gap may indicate market weakness and a prevalence of negative sentiment. Market participants may exhibit caution and refrain from opening long positions.

4. Comprehensive analysis: It is important to consider additional factors such as trading volume, technical indicators, and the news background. They help to better understand the market's reaction to the descending gap.

A similar situation, but with the opposite effect, is observed when forming an upward gap.

Each situation is unique, and market behavior can vary. It is necessary to apply additional analytical tools to make informed decisions. Therefore, using gaps as a basis for trading decisions should be accompanied by caution and a comprehensive analysis of the market situation.