Open gaps can indicate the start of new momentum often triggered by the same cause of the gap itself; the case in gap 1. It is also common for gaps to be filled relatively quickly. This is in the case when the gap is produced from over optimism or pessimism and is then corrected later. The filling of open gaps can also be a case of a self-fulfilling prophecy. Chart technicians are all looking at the open gap and trading accordingly. They know others are also eyeing the same price gap. You can see technical evidence of such in the gaps above:
The top of gap 2 marks the closing price of the day it was filled
The top of gap 3 marks the highs of the day it was filled
The bottom of gap 4 was the opening price of the day it was filled
These may not be extreme examples but the point is open gaps on charts are a technical tool used by traders. The characteristics of the gaps may be different but each affects the price action in some way following.
Here are examples of MA that affect the price action of the chart.
Like other trend lines, moving averages don't always predict the charts next move but can be used to find educated buying or selling opportunities or to gauge the health of the current price action in a particular asset.
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