Gap down
A gap down is a price gap where a market opens below the previous close or the previous low, leaving empty space on the chart above the open.
Definition
A gap down is a price gap where a market opens below the previous close or the previous low, leaving empty space on the chart above the open.
It mirrors a gap up. Like a gap up it describes the space between two candles, and it says nothing by itself about where price goes next.
A fair value gap is a different test made on three candles, and it can form without any gap down in price.