Gaps happen due to certain key reasons. For instance, if a company reports earnings that are a lot better than what people expected, the stock price of that company might open at a higher price the next day. This means the stock's opening price is higher than where it closed the previous day, and this difference creates what we call a 'gap'. Opening gaps occur more frequently when trading stocks than when trading forex.

The forex market is a 24-hour market, operating five days a week - from Sunday evening (UTC) until Friday evening (UTC). This nearly continuous operation leaves little room for gaps to form, as there are always participants trading currencies around the globe.

On the other hand, the stock market is not a 24-hour market. It has defined opening and closing times, typically from Monday to Friday during local business hours (with variations depending on the specific stock exchange). Stocks don't trade outside these hours, and therefore, the price when the market opens may differ from the price when it closed, resulting in a gap. These gaps can occur due to various factors such as after-hours news, earnings reports, or changes in investor sentiment.

So in essence, the structure and operation of these two markets leads to the occurrence of more opening gaps in stocks than in forex.

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How to enable the Volume Imbalance Feature?

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Step 1: Head over to the SMC Settings

To enable the feature simply head over to the indicator settings.

Step 2: Enable the Opening GapFeature

When you are inside the SMC settings - locate the "Imbalance" section and make sure to check the Opening Gap is checked as shown below.

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