Trade the gap

hi

i have been studying the price action and have found something interesting using gaps in the market

its very easy ,

for example if you see a up candles open price being closed with a down candle , wait on next candle to close , that wiill be the gap and a short entry

enter and hold until opposite signal or 2 higher closes

if i get 50 pips i will take it

if your unsure what i am talking about then just ask

just exit when there is an opposite candle color

just joking ya

That’s an intriguing angle on gaps. What I like about your approach is the simplicity- you’re not overcomplicating it with indicators, just pure price action logic.
A few things stand out to me:

Structure & discipline: Waiting for the confirmation candle before entry filters out noise and keeps the setup mechanical rather than emotional.

Ris- reward thinking: Fixing a 50‑pip target is practical, but I wonder if scaling out or trailing stops could help capture those extended runs when momentum really kicks in.

Session dynamics: Gaps often behave differently depending on liquidity. Have you noticed whether London open vs. NY open gives cleaner signals? That could be a useful filter.

Market context: Sometimes gaps align with broader sentiment shifts (news, session handovers). Pairing your method with context might sharpen the edge even more.

Overall, it’s a neat framework- easy enough for newer traders to grasp, but with room for refinement for those who want to dig deeper.

Utilising gaps in trading can be very profitable, however one needs to define what is the gap, and observe how a particular traded instrument behave when these gaps occur.
I find gaps particularly useful when trading indices, spend a lot of time trading DOW. Well defined gaps are a common feature on indices, but it is paramount to discern between different types of gaps, and the particular treatment of session close, and subsequent session open.
Needless to say trading gaps is part of my trading strategy, mainly trading DOW, though lately also looking at gold.

this method works very well

try it on a 15 min tf chart

enter at the gap and hold for 17 pips

only exit when there are 2 higher closes or 2 lower closes ,

they don't need to be 2 in a row just a candle close then a higher or lower close

or 17 pip take profit

if you want use a 17 pip stop