Here is an additional chart showing price moving to test R1 above 1213. I would be buying this pullback.
http://www.brandonfredrickson.com/gaps.html also this thread I started http://www.elitetrader.com/vb/showthread.php?s=&threadid=8127&highlight=trading+the+gap
Even though we are right back where we started I have to agree with you Buying the b/o was totally correct and excellent trading skills. First target 10620 on the YM was hit easily and now the test of the opening range must hold here. I wouldn't be quick to add but holding remaining positions is cool and trail stop to make sure it's at least profitable. Good trading Lefty
Here is a chart of the OEX. I plan for breakouts by looking to the left to see where possible tests are likely to be. Also I can see where support should kick in for a retracement. This is difficult to post in real time because I am not able to type fast enough to setup charts and send them. so it looks like I am commenting after the fact. Sorry folks Once again, I have to repeat that I missed this trade. Its easy to see in retrospect and my comments to take the breakout were made in real time. I just did not have the time to do the posting and take the trade. Anyway here is the chart
Nice to see you are friends again I heard a lot about gaps in the past that gaps will bee filld, and that the trend will continue in the direction of the gap so im little confused if there is different gaps or what? I think ill stick to the trading hours at ES (s&p 500 mini) it seems to avoid alot of trouble with mutsh more volume. Regards
Stopped 10590 with profits Can always re-enter long but do not want to let a winner turn bad. That was fun even with all the nonsense.
I apologize if I came off negative I was just playing around with words. Gaps or whatever we call them (when we don't include Globex trading or other after hours exchanges) are playable especially in stocks. I don't think you will find to much info out there of quality and I can only tell you that it took me along time to trade them correctly and it was very frustrating as technolgy changed through the years. My advise is to get a good TA book (check the context to make sure gaps are in it) that is current John Murphys stuff is good and learn on your own.
Glad I bailed, that would have been nasty and letting a winner turn into a loser would have been very unprofessional of me. Good trading everyone !
thanks for the info ben given me, il try to find somthing in the named books and do some search on google. But il also hope that i get some more info from those how trading the gaps. Regards
Another chart to try to pull this to a conclusion. As you can see the breakout happened. We would have taken it, and then the question is do you get continuation, or does it fail. In this instance the b/o goes on to test R1 and then fails. I know from my own experience that pullbacks at 2PM can turn into reversals. As mentioned before, I would have been looking to take profits of 1.5 points then waiting for a pullback. In this case I would have bought the pullback and had to close it out. I would guess this would be a small winner or at worst a scratch trade. Here is the chart.