Do You Trade Gaps? Here's What You Need to Know!

📈 Trading gaps can provide some of the most reliable opportunities in the market—if you know how to handle them.

🔍 What is a gap?
A gap occurs when the price "jumps" between two levels, leaving an empty space on the chart. Gaps usually reflect strong market sentiment, news, or low liquidity during off-hours.

💡 Key points to consider:

1️⃣ Types of Gaps:

Breakaway Gap: Signals a new trend.
Continuation Gap: Often occurs mid-trend.
Exhaustion Gap: Marks the end of a trend.

2️⃣ How to Trade Them:

Identify if the gap is likely to fill or expand.
Use support and resistance around the gap.
Always keep an eye on volume—low volume could mean a false move.

3️⃣ Risk Management:

Gaps can be volatile! Use tight stop-losses and wait for confirmation before entering.

What’s your favorite strategy for trading gaps? Let’s discuss below! 👇