I have been analyzing lately how gaps work in trading, and honestly, it's something many traders underestimate. A gap in trading is basically that gap that forms when the closing price of a session does not match the opening price of the next. It may seem like a minor detail, but these movements can be very profitable if you know how to interpret them correctly.

The interesting thing is that not all gaps are the same. There are common gaps that close quickly without much impact, but there are also breakout gaps that mark the start of new strong trends. Then there are continuation gaps, which appear in the middle of a movement and confirm that the trend will continue. And finally, exhaustion gaps, which warn you that a change in direction may be approaching.

Regarding how to trade with this, the first step is to correctly identify what type of gap you are seeing on the charts. I always confirm with other technical indicators before taking a position. There are several ways to play gaps: you can follow the direction of the movement in a breakout gap, or wait for the price to close the gap if it is a common one. There is also the strategy of adding positions when you see a continuation gap, which generally maintains the trend.

Of course, you need to be careful. Gaps can bring significant volatility and do not always result in the opportunities you expect. Sometimes they close quickly without generating real gains. That’s why it’s crucial to combine gap analysis with other tools and risk strategies.

Currently, BTC is at $75.25K with a change of -0.35% in 24 hours, and ETH at $2.32K with -0.55%. Both may present interesting gaps in upcoming movements. If you understand well what a gap is in trading and how to identify each type, you have an additional advantage in your analysis. It’s worth spending time mastering this.