I have been observing how many traders talk about gaps, and the truth is that it is one of those concepts that can significantly change your trading approach if you understand it well. Basically, a gap occurs when there is a noticeable difference between the close of one session and the open of the next. It may sound simple, but there is quite a bit of market movement behind it.

The interesting thing is that not all gaps are the same. Some appear at the start of a strong trend (those can indeed leave you profits), others simply close quickly without much drama, and then there are those indicating that a trend is coming to an end. There are also continuation gaps that appear in the middle of a strong move and basically confirm that things will continue in the same direction.

Regarding how to trade with this, the strategy depends heavily on the type of gap you identify. Some traders prefer to enter in the direction of the gap when they see a clear breakout, others wait for the price to close the gap again (especially with the more common gaps). What I’ve seen work best is combining gaps with other technical indicators, not just relying on the isolated gap. Candles and other patterns help confirm whether it’s really worth following that signal.

Now, to be honest: gaps can bring volatility, and they don’t always result in real opportunities. Sometimes they close so quickly that you can’t even react. That’s why it’s crucial to identify them well, confirm them with other tools, and have a clear risk management plan before entering.

Looking at the numbers right now, BTC is at $79.69K with a +1.59% in 24 hours, and ETH is at $2.36K with +2.14%. These are moderate movements, but it’s exactly the kind of environment where gaps can appear and generate interesting opportunities if you know where to look. The key is not to obsess over gaps as the only tool, but to use them as part of a more comprehensive market analysis.