How to trade with Gaps [Step by step guide]

A "gap" or hollow occurs when the price jumps between two quote periods, skipping several price levels... A gap creates a visible vacuum in the price chart... It is easily detected, just by taking a look at the chart you can see several gaps... In the image you see the Gap A and the Gap B that are bass hollows, these occur when the most recent maximum is below the previous minimum. You can also see the opening C, which has 20 points... Like the bass holes, there are also Alcista gaps, they are formed when the most recent minimum is above the previous maximum (the gap C represents an Alcista Gap).

If after reading all of that you still think that the Gaps are simple "holelets" that sometimes come out in the graphics, you better play parch�s. This kind of formations can give you the advantage that many are looking for with robots and magic strategies that are useless. But of course, you have to study and understand the context, not copy and paste Instagram setups. The market is not going to give you anything just because you have discovered that there is a gap between candles. This is not the holy grail, it is another tool, but well used, makes the difference. If you are not willing to do the mental and technical work it requires, keep dreaming about the financial independence from the sofa.

Thank you for sharing this very detailed information about the Gaps. It�s a few times that I find a well structured explanation without nonsense. Understanding the differences between the types of gaps and how to react to each one can change the way you operate completely. Now it�s clear to me why I sometimes got into an operation after a Gap and ended up sweeping. Not everyone is to enter. Sometimes the Gap is not an opportunity, but a sign that it�s time to do nothing. I�m left with that.

Is there really still people who ignore the Gaps? Come on, it�s like looking at a map and not seeing the holes in the roads. Then comes the complaints: �the market is manipulated,� �brokers take me out.� No, what happens is you don�t even know the basics. If you don�t understand what a Gap means, you shouldn�t even approach operating in real. It�s that simple. And I�m saying it with desire, because I�m sick of seeing people losing money for not studying. This post should be posted on all forums.

The Japanese window section blew my head off. I�ve been using Japanese candles for a while, but I�ve never really understood the power of those �windows.� I find it brutal how something so visual can mark the direction of the market so much. I�m going to start combining these patterns with my analysis of supports and resistances. I think there�s an interesting synergy there. Thank you for opening my eyes to this topic, I�m going to try it out in my next trading sessions.

The example of the exhaustion gap seemed very correct to me. I always had doubts when I saw those gaps at the end of a trend. Now I understand why whenever I operated them I went wrong: it was not an entry signal, it was an exit signal. It is curious how something so small in the chart can have such big implications. And even more curious that so many still ignore it. This kind of thing separates the serious trader from the amateur who only seeks adrenaline.

Let's see, if after all this someone still doesn't understand that volume and momentum are key to validating a gap, that they buy a crystal ball. Because operating alone with the hole is like jumping into the void without parachute. I don't know how many times I'll have said it, but I repeat: an unconfirmed Gap is a trap. If you also go against the main trend without looking at the major frame time, we don't even talk. So the count burns in two days.

This content should be in some serious course of technical analysis. Not that crap they sell around with promises of �live trading in 3 weeks.� Here you can see that there is experience behind it and not just recycled theory. It is appreciated that someone takes the time to explain not only the types of loops, but also when they make sense and when they are just noise. There is too much misinformation out there, and this kind of publications help to clean up the terrain a little.

The part of the trader�s psychology is very real. Every time I see a big gap my first urge is to go in the opposite direction. The fear of losing the reverse can me. But of course, that�s not analysis, it�s pure animal instinct. Since I started using volume and momentum to confirm the Gaps, my success rate has gone up a lot. I�ve gotten rid of many impulsive operations and that, in the long run, is noticed in the account. It�s a much more mature approach.

Abandoned Baby? Did someone really put that name to a pattern? Japanese technical analysis has things that seem to me to be a mix between poetry and science fiction. But wow, they work, that I don�t argue. I�ve seen that pattern appear a couple of times, and it does anticipate interesting twists. Even if it�s hard to see, if the entire structure is fulfilled, it usually has a strong impact. I�m going to include it as a secondary alert in my system.

Thank you for the detailed explanation. I have printed the text to review it several times. I like how both the basic concepts and the most advanced ones are addressed, all in the same narrative. You don�t usually see something like that in forums. Also, it has given me ideas to adjust my break-up strategy. I think using the breakaway clips as an additional filter can reduce many fake entries I�ve been dragging. Great contribution.

Am I the only one who thinks that Gaps are the way the market laughs in your face? Because just when you think you have control, a gap appears that makes you doubt everything. That�s the way this business is. But, if you learn to read them and keep your head cold, they stop being enemies and become allies. Sometimes the secret is not to react immediately, but to wait for confirmation. The market does not reward the anxious.

I was struck by the concept of "fading the gap." I've read about that before, but I've never understood the psychological background well. Now I see it clearly: it's basically fighting the current out of fear or greed. Understanding that phenomenon has made me more prudent. I used to pull my head off, now I prefer to watch a little more. I no longer seek to be right, but to keep capital. In the end, that's what keeps your account alive.

To those who say that the Gaps are useless, I can only tell you one thing: go on like this, that more opportunities leave me. If you ignore something so obvious, it is that you do not understand the market nor are interested in learning. Not everything in technical analysis are beautiful lines and figures. Sometimes, the most powerful is the most obvious thing. But of course, it requires context, patience and knowing what you are watching. And that is not learned in a TikTok video.

The distinction between valid and non-touching Gaps seemed fundamental to me. I�ve been operating for years without knowing why some Gaps worked for me and others didn�t. Now I understand that context is everything. I�m going to review my past operations and classify them according to the types of Gaps. I�m sure I discover patterns that used to go unnoticed. I find it an excellent way to audit my operation and evolve.