How Gap + Candle Behaviour works on charts

Any stock for example

A Gap occurs when price opens significantly above or below the previous candle's closing area, creating an empty price region between the two trading ranges. Gaps can occur because of news, earnings, overnight developments, changing market expectations or sudden shifts in supply and demand. The candle behaviour following the gap is particularly important because it can reveal whether the market is accepting or rejecting the new price zone. If price gaps upward and continues to hold near the highs with strong candles, it can indicate sustained buying interest. If the gap-up is quickly rejected and price falls back toward the previous range, it may indicate exhaustion or a potential gap-fill. Similarly, a gap-down followed by strong selling can confirm bearish momentum, while immediate recovery from the gap can indicate rejection of lower prices. Traders should therefore analyze the gap size, opening location, volume, candle structure and subsequent price action rather than assuming that every gap will either continue or fill.