Some traders believe that gaps always fill — thinking that whenever a market opens with a price gap, it is inevitable that price will return to “close” the gap before moving on. While gap fills happen often, they are not guaranteed, and treating them as certainties can lead to dangerous trading decisions. In reality, whether a gap fills depends on market context, momentum, and underlying fundamental factors.

Let’s explore why gaps sometimes fill, why sometimes they do not, and how to trade gaps intelligently without falling into risky assumptions.

Why Traders Believe Gaps Always Fill

This idea comes from:

• Observation of frequent fills: Many gaps do close quickly, especially on lower timeframes.
• Simplified trading advice: Some educators and forums teach “gap fill” strategies as if they are mechanical and automatic.
• Desire for predictable setups: Gaps seem like clear, easy targets compared to the messiness of normal price action.
• Confirmation bias: Traders remember the gaps that filled but forget the ones that did not.

Although gap fills are common, assuming they are certain can lead to dangerous trades.

What Is a Gap?

A gap occurs when:

• Price opens significantly higher or lower than the previous close, creating an empty space on the chart.
• Commonly happens after major news events, earnings releases, or during thin liquidity periods (e.g., weekend gaps in forex).

There are different types of gaps — and their behaviour varies greatly.

Types of Gaps and Their Likelihood to Fill

Type of Gap	Description	Likelihood of Filling
Common Gap	Small gaps in normal market conditions, often in ranges.	High likelihood of filling.
Breakaway Gap	Gaps that occur at the start of a strong trend after consolidation.	Less likely to fill quickly.
Runaway (Continuation) Gap	Gaps in the middle of strong trends due to momentum.	May fill much later or never.
Exhaustion Gap	Gaps at the end of a trend, often signaling reversal.	High likelihood of filling soon.

Understanding the type of gap is essential for setting realistic expectations.

Why Gaps Sometimes Fill

Gaps often fill because:

• Price seeks efficiency: Markets aim to fill liquidity voids left by gaps.
• Traders close positions: Profit-taking or loss-cutting after news events often drags prices back.
• Market psychology: Gaps attract attention, and traders react to them, creating self-fulfilling moves.
• Overreaction correction: Gaps caused by emotional reactions can be retraced once cooler analysis prevails.

But context matters — strong fundamental shifts can invalidate normal gap behaviour.

Why Some Gaps Do Not Fill

Gaps may not fill because:

• Fundamental changes: Major news (like central bank surprises or geopolitical events) can permanently reprice assets.
• New trend establishment: Breakaway and continuation gaps often signal powerful new trends that leave gaps behind.
• Strong institutional flows: If large funds reposition after major news, they reinforce the new price level rather than reversing it.
• Low priority: Sometimes markets simply “accept” the new price and move forward without revisiting the gap.

Blindly betting on gap fills without considering these factors is reckless.

How to Trade Gaps Intelligently

Smart gap trading involves:

• Identifying the gap type first: Use technical context to assess whether the gap is likely to fill.
• Confirming with volume: Gaps with low volume are more likely to fill; gaps with strong volume and momentum may continue.
• Using price action signals: Wait for rejection, confirmation patterns (e.g., bearish engulfing or bullish hammer) before trading toward a fill.
• Setting clear risk limits: Always define stop-loss levels — gaps that run against you can cause big, fast losses.
• Not forcing trades: If a gap shows strength and holds its ground, sometimes the best trade is to do nothing.

Flexibility beats blind expectation.

Common Mistakes in Gap Trading

Avoid errors such as:

• Assuming every gap must fill quickly: Some gaps fill within minutes; others take months — some never do.
• Ignoring overall trend context: Gaps against the dominant trend are more likely to fill than gaps aligned with strong momentum.
• Overleveraging: Trading gaps aggressively without controlling position size is extremely risky.
• Getting emotionally attached to fills: Always trade what the market shows — not what you want to happen.

Trading gaps requires skill — not assumptions.

Conclusion: Gaps Often Fill — But Not Always

In conclusion, gaps often fill, but they do not always fill — and assuming they will is a dangerous trading shortcut. Understanding the type of gap, the market context, and price action confirmation is crucial for trading gaps intelligently and safely. Smart traders stay flexible, manage risk carefully, and avoid emotional attachment to the idea of inevitable fills.

If you want to master advanced trading techniques, including how to analyse and trade gaps professionally, explore our Trading Courses and start building the skills for smarter, more strategic trading today.