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Gaptrading

Knowledge about Gaps trade in market:By keeping 287.62 as stop-loss we can trade in this stock, target 313.49 Because the stock has many gaps we will talk about gaps, Gaps are areas on a chart where the price of a stock moves sharply up or down, with little or no trading in between. A gap is produced when on a particular day a certain stock at its lowest price is traded higher, compared to its highest price at which it was traded on a preceding day. Gaps can provide clues about the price movement. Remember that not all gaps are genuine, some are phony as well. Genuine or valid gaps occur when the market skips a price level. Common gaps normally occur in calm and quiet markets, rather trend less markets. There is a common superstition that “a gap must be closed.” It is further molded into “If space isn’t filled in three days, it will be filled in three weeks, and if it isn’t filled in three weeks, it will be filled in three months, etc.”
NYSE:MA
by Trade-Technique
21
BTC1! - Weekly CME Gap update (05/18)CME:BTC1! was opened to a +2.76% gap which was already filled. For example, if you decided to trade this weekly gap with avg stop size about ~3%, it would be a low R:R trade at the moment; but with a tighter stop loss you most likely was stopped out. You can try to vary parameters in my "Gap Strategy " and find the best strategy for gaps. Hit the "LIKE" button and follow to support, thank you. Information is just for educational purposes, never financial advice. Always do your own research.
CME:BTC1!
by Bitduke
BTC - Largest CME Gap everCME:BTC1! opens to a ~12.3% gap, the largest gap to the moment on CME bitcoin futures. Last gap, second in size, caused by dump in March was filled only after a month. But this time until halving only a day, not even a month. Will Bitcoin go up to fill in the CME gap this week? Historically, CME gaps for bitcoin price fill over 95% of the time: sooner or later. Hit the "LIKE" button and follow to support, thank you. Information is just for educational purposes, never financial advice. Always do your own research.
CME:BTC1!Long
by Bitduke
2
Gap trading I’m often asked about gap trading after I post up a gap trade setup. Usually the question is, “ what is my strategy in trading gaps?”, or “What is gap trading?” Back in June 28-30 this gap happened in spot gold. ( the pink circle) it’s a good example of gap trading from real charts not text book examples. Well first of all, not all gaps are created equally. On days where the market, or certain currency pairs gap in price right from the open, gapping with a larger gap from the previous Friday closing price, those are my targeted trading opportunities and here is why! Any gap which is larger then 30-40 pips or even bigger are good opportunities. The 30-40 is a minimum range in gap totally depending on the pairs daily true range. Example with the USDJPY pair. The daily range is a smaller range so a gap of 30-40 pips is a good opportunity. I’ve seen gaps of 100 and more in this pair. So weather it gaps up or down we are interested in taking the other side of the gap. Mostly a gap is created by imbalances in the market and one of my rules of trading states... “nothing moves in a straight line for a long!” Imbalances correct themselves, overly excited traders pushing price in a straight line and at some point they also take profits. Thus price pulls back ending a straight line move or in case of a gap the imbalances seek to correct just because of the imbalance at the open. Going into this weeks open I will be actively looking for gaps in currency pairs with tighter broker spreads. Because some pairs will open the week with 10-20 pips or more in broker spreads, those pairs are right off my list of pairs to watch for gaps. Unless these pairs ( larger broker spreads ) gap by 100 pips or more, I don’t bother with them. I don’t even look at them unless same underlying pair in a smaller spreads pair gaps are over sized. Example: if the USDJPY ( a pair who usually has a tighter broker spread even in low liquidity ) gap is let’s say 50-70 or on the larger side of things, we could expect that the EURJPY or the GBPJPY gaps will also be larger even in those pairs even with broker spreads being larger on average to start with. So the trade strategy is simple. Using the 15 minute chart I allow the first candle to form. With a larger gap we then enter the trade slightly to the gaps direction after the closing price of that first 15 M candle then the first candles closing price. Example of this would be; if the pair gaps higher and the 15M candle closed at 109.00 then we’d set a sell order at 109.05 or 109.10, because both entries are at higher prices then the 15 M candle close. We at the same time set a tighter stop setting because gaps can get larger before returning to closing the gap. Usually we set the stop above the first 15M candle. But there is a second strategy of playing a gap trade. One could enter the trade just like my example above but also setting more orders in the direction of the gap just in case of an even larger gap move after the opening gap. After the orders are filled we wait for the closing move. Mind you, these weekly opening gaps are also in the lowest liquidity part of a new trading day, so gaps usually will close heading into the Asian market days open. We get out of the trade in my standard way. By taking some off as soon as the trade moves in a positive way equal to my stop setting. At the very point we take some profits off we also move stops to break even ( BE ) and allow the trade to hit targets because we have a free ride trade or risk free trade. Once we get to this point of a free ride trade, I always allow the market to take me out at either my targeted profit zone or at BE. No more management or time must be devoted to this trade. Besides the outcome is either profits or no negative effect to my trading account. So my time is better used in finding the next opportunities. That’s it! That’s gap trading how I do it. It a higher percentage trade because to a higher degree these gaps close before moving again in their longer term trends. Side note: should a gap happen counter longer term trend then your profit targets could well be beyond the close of the gap. This would allow for your trade to move with the trend for a longer term or bigger profits. These kind of gaps are my favorite kinds to take. Because the gap in price gives a great price because the gap is counter trend but the trades outcome can be larger by added to the original trade. Because the start of the position is risk free or has booked small profits. So adding orders on doesn’t have to increase risk to the trade. I’d have to do another post on adding to positions once you’ve started a trade in the longer term trends directional move. Until next time! All the best in your trading.
FOREXCOM:XAUUSD
by PipsTradingClub
HUGE WINDOW ON OIL!!! WILL IT CLOSE? BULL TRAP OPPORTUNITY-Over the Weekend we got fundamental news that skyrocketed the Oil to the Highs of $63 -Couple of hours ago, news came out that Saudi oil output will return sooner than normal What does that mean for us? -if we didn't get that recent news there was a good chance oil would have continued to rally without any major retraces due to oil shortages -with the news update expectations have now changed maybe we rally but not as high as we thought therefore a retrace is now likely **NOTE** I have always been taught that whenever a window or gap is opened in the market ....sooner rather than later the market will try and close the window/gap. For those who don't know... It is because so much money came in that price soared without any fills so closing the gap will fill remaining orders and price should continue in the same direction. Keyword should. Beware not all the time. What am I looking at... - the news candle broke the ema which lets me know the trend up is in danger and bulls profited and bears came in --doing a fib of that move (yellow fib) confirmation is that price bounced hard off the .50 -if you notice on the chart I have marked the last chance bulls who are protecting the open window support zone which sometimes is used as support as you can see from the inital bounce up to 60.70 area -the fact that bulls have tried 3 times pushing price up and getting weaker every time tells me that are about to get trapped which will provide momentum to close the window - Below Im proving the H4 WTI OIL chart that doesn't even show a gap so unaware bulls don't even see whats happening -Also currently OIL has been in a roughly $10 dollar range from $50.50 - $61 - the news extended us to the 1.27 which if we are still range bound should push us back to the .50fib which coincidentally is RIGHT AROUND THE WINDOW CLOSE!!! It also doesn't hurt that macd and stoch is coming down which is bad news for the bulls.. As the better trade would have been from the .50fib on this news move around 60.70 but I caught it late so there goes a beautiful low R:R trade. But we are hunters we set the traps and go eat. Right now going for a momentum trade taking out the weak bears and having them run for cover. Im entering on any retraces here with stops above previous to last H4 candle 60.50 SL aiming for 56.40 TP1 and 55 TP2... I don't always know what Im doing but when I do.. I'm pretty amazing! Happy Hunting Happy Trapping BooBii Make sure to like... comment ... and subscribe Any questions feel free to ask... For what I don't know... I just don't know... But what I do know I'll gladly share...
NYMEX:CL1!Short
by rickyboobii