Gap fill trading is a price action strategy that targets the market’s tendency to revisit and “fill” price gaps—areas on a chart where no trading...

Gap fill trading is a price action strategy that targets the market’s tendency to revisit and “fill” price gaps—areas on a chart where no trading occurred between sessions. These gaps appear after earnings surprises, news, or momentum shifts, and many eventually retrace to the prior day’s close or the gap’s midpoint. Traders use this behavior to plan entries, profit targets, and risk. Typical approaches include fading an overextended open back toward the previous close, or waiting for a confirmed reversal before riding the move into the gap. Not all gaps are equal: breakaway and runaway gaps often persist, while common and exhaustion gaps are more likely to fill. Effective gap fill trading blends context (trend, volume, float, catalyst), precise levels (open, prior close, VWAP), and disciplined risk management. This tactic applies to stocks, futures, and forex across intraday and swing timeframes, and benefits from scanning, backtesting, and clear rules. Used thoughtfully, gap fills can add high-quality, repeatable setups to your playbook.

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