I am interested in learning more about how to trade the opening gaps on indices like the Dow, S&P and Naz. Most gaps seem to close that day, but am having trouble identifying and avoiding the ones that won't. Are there any web sites or experts that can help accelerate my learning curve? Do some traders really make a living just trading opening gaps on the indices? Is this realistic or am I fooling myself? Any help or advice is appreciated.
I think John Carter has a couple of good techniques in terms of gap fading. Go to your local library and check out some of his books.
This is almost exactly what is in John Carter's book about opening gap: http://www.cbot.com/cbot/pub/cont_detail/0,3206,1070+14719,00.html
Many thanks for the help! I am very familiar with Carter's work and how he plays gaps, but still find his approach fairly subjective and difficult to replicate his success rate. Was hoping there were some other pros or websites that may be of help. Again, thanks.
That was very helpful not only for my gap strategy but also my futures trading. Linda is very impressive. It was so good I had to watch the entire video (30 min) twice in a row. Thanks so much for sharing. Anyone else got any great info like this?