How to Trade Gap Fill in Gold XAUUSD Trading (complete strategy)

Jul 15

Today, I will teach you a profitable strategy to trade gaps on Gold.
I will explain how to predict the exact moment of a gap fill and how to identify an accurate confirmation entry signal.
Take notes, and let's get started.

I wanna start with explaining why gaps on Gold occur.

Most of the gaps that you will see trading Gold are opening gaps.
The ones that form exactly after the market opens after the weekend.

They happen because of the occurrence of impactful events while the market is closed.
The market makers are trying to price in this news, creating a gap.

Now, let's briefly discuss the main elements of the gap.



That's a gap up.

• The level where the last candle closed before it was formed is called gap opening level.
• The level where the first candle opened is called gap closing level.
• The area between gap opening and closing levels is a gap itself.

Most of the gaps are filled, meaning that the price will likely return to a gap opening level shortly.



That's how a gap up opening fill looks.



And that's a gap down structure.



As a gap up, we will expect that it will be filled with Gold price rising to a gap opening level.

The main problem is to predict when exactly a gap is going to get filled.
Very ofter then price will pass a substantial distance before returning to a gap opening level.

This strategy will help you to accurately predict that event and identify a potential reversal zone.



After a formation of a gap down opening, wait for a test of a liquidity zone. I suggest using this model on 1H or 4H time frames.

Then, you will need to wait for a consolidation and bullish accumulation.

The price should start respecting some minor resistance.
Your signal that the market is ready to fill a gap is a breakout of a resistance and a candle close above that.

• Open buy trade immediately or on a retest of a broken resistance.
• Set stop loss below the lows of the consolidation.
• Your take profit will be a couple of pips below a gap opening level.

The same model and strategy will be used for trading gap up opening.



Above is the example of trading gap down with this strategy.

After a formation of a gap down opening the price dropped lower and tested a liquidity demand zone.
The price started to consolidate, respecting some minor resistance.
Its breakout and an hourly candle close above that confirmed that Gold is ready to fill this gap.

• A trade was opened on a retest of a broken resistance.
• SL was set below the low of a consolidation.
• TP was a couple of pips below the gap opening level.

And the trade reached the target.

Gaps always provide profitable opportunities in Gold trading.
Recognizing the exact moment to enter is the key in making good money with gaps.
I hope this strategy will help!

❤️Please, support my work with like, thank you!❤️

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Jul 18

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