Gap Trading — When Price Jumps

A gap is a hole between yesterday's close and today's open — overnight news repricing the auction.

Level by level

Beginner

Common gaps (no news, inside range) usually fill; breakaway gaps (news + level break + volume) usually DON'T — chasing the wrong kind is the classic error.

Intermediate

Gap-and-go vs gap-fade: the first 30-60 minutes decide. Holding above the open favours continuation; failing back through it favours the fade.

Advanced

The gap family (breakaway, runaway, exhaustion) maps a trend's life story; island reversals (gap up, stall, gap down) are the dramatic finale — see them in the Chart Playground.

Common mistakes

• Fading every gap because gaps always fill (they don't)
• Full size in the first 5 minutes of a gap open

Practise & tools

• Free calculators & trading journal
• Structured lessons in the Learning Hub
• Daily Chart Challenge
• Island reversal, interactive

_Educational content only — not financial advice. Historical behaviour never guarantees future results._