GAP Trading Strategy

Learn a gap trading strategy focused on identifying and utilizing price gaps for potential trading opportunities in the market.

Published · Updated · Methodology: Price Action

Part of: Gap Trading

  • Methodology: Price Action
  • Content type: educational

Source video

Decoded from: La Estrategia de TRADING con GAPs MÁS RENTABLE - ¡Asi funciona! by El psicólogo del trading — watch the original

Key timestamps:

  • 0:00 - Introduction to Gap Trading

Strategy overview

A gap is the empty space left on a chart when a market opens away from its previous close, and gap trading is the family of approaches built around whether that space gets filled, held, or extended. That single definition is where most gap content stops — the harder question is which gaps are worth acting on and which are noise, and that is where individual traders diverge.

This entry decodes "La Estrategia de TRADING con GAPs MÁS RENTABLE - ¡Asi funciona!" from the Spanish-language channel El psicólogo del trading, a channel whose framing sits closer to trader behaviour and decision-making than to indicator stacking. The strategy is classified here as pure price action: no indicator overlay, no oscillator confirmation — just the gap itself and how price relates to it. That is a deliberate choice rather than an omission, and it puts the weight of the method on reading context and on the discipline to wait for the specific gap the trader is looking for.

The video presents the approach as its most profitable gap setup, which is the presenter's claim about their own trading, not a measured result. This page covers the concept and the source; the video itself is the reference for how the presenter frames and executes it.

Topics

gap trading strategy · price action strategy · trading strategy · tradingview strategy · pine script · market gaps · day trading strategy · swing trading

Frequently asked questions

What is a gap in trading?

A gap is a discontinuity on the price chart where a market opens above or below its previous close, leaving a range with no trading activity. Gaps commonly appear at session opens, after weekends, and around scheduled news or earnings.

Why is gap trading considered a price action strategy?

Because the gap is visible directly on the chart without any calculation. There is no indicator to compute or smooth — the setup is defined by the gap's location, size, and how price behaves around it, which is why approaches like this one carry no indicator settings.

What does 'filling the gap' mean?

Filling the gap means price returns to trade through the empty range and reaches the prior close. Gap traders differ on whether to trade the fill, trade the continuation away from it, or treat an unfilled gap as a signal about the strength of the move.

Is this strategy available in Spanish?

The source video is in Spanish, published by the channel El psicólogo del trading. The decoded entry on Strategy Decoder is presented in English so the concept is accessible regardless of the original language.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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