Trading Gaps - 07/08/26
About this episode
In this episode, Merlin Rothfeld discusses the complexities of trading gaps in the financial markets and shares his personal approach to understanding and trading them.
Few topics generate more debate among traders than price gaps. Do all gaps eventually get filled? Should you trade in the direction of the gap... or fade it? Are breakaway gaps different from exhaustion gaps? In today's episode, I answer a viewer question about one of the most misunderstood concepts in technical analysis and share my personal approach after nearly 30 years of trading the financial markets. We'll break down: What causes price gaps The different types of gaps every trader should know Which gaps are most likely to fill—and which often don't How I evaluate gaps before entering a trade Common mistakes traders make when trading gap openings The reality is that there isn't a single "correct" way to trade gaps. Different strategies work in different market environments, and understanding the context is often far more important than the gap itself. Because a gap isn't a trading signal... It's simply new information that needs to be interpreted correctly. We'll also review today's market action, discussing the biggest movers, sector performance, and how today's trading may be setting up opportunities for tomorrow's session. As always, I'll walk through what I'm watching…
People in this episode
Host: Merlin Rothfeld
Topics covered
- trading gaps
- technical analysis
- market strategies
- price gaps
- trading mistakes
- market recap
Keywords
- price gaps
- trading strategies
- gap filling
- market analysis
- technical levels
- trading mistakes
More episodes of TraderMerlin
- Trading Week Wrap Up! - 07/17/26
- Space Stocks: Coming Back Down To Earth! - 07/16/26
- IBM: To Buy or Not To Buy? - 07/15/26
- Kevin Warsh: Setting The Stage - 07/14/26
- Trading Week Wrap Up - 07/10/26
- Trading Q&A! - 07/09/26
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