how to deal with opening gap

Discussion in 'Technical Analysis' started by robinxing, Feb 26, 2007.

  1. Now I am using breakout strategy in hsi index

    but hsi index is a volatile market it always generates so many opening gap

    so I have to trade it after 10 minutes of the opening gap

    does any good technical tools to eliminate the impact of opening gap to make it smooth and gapless?

    by the way ,is there any paper about the topic?

    thank you
  2. =================
    Trade ES,etc..., but probably markets are similiar;
    not sure why ''have to trade it after 10 minutes''Doesnt sound right '''have to'';ES didnt really move for 20 minutes or so after gap today

    There are some good gap probabilities [not predictions];
    same deal they gapped up my favorete fruit cocktail about 10% to about 00.80 Didnt buy, planted fruit trees.

    Hardly ever buy anytime like that ulesss it was an oil company take over, gap up was cheap then.I agree with your paper idea, write down what you learn.

    A strong trend-friend especially early in cycle;
    then gap may not make any difference at all.
    :cool: Its late in SPY -ES cycle, uptrend almost 4 years old.

    The plans of the diligent tend only to advantage.
  3. ================
    Excellant, but basic paperwork on derivatives;[includes $14,000
    S&P gap] gaps,
    actually forgot i had this in my library.

    The Four Biggest Mistakes in FUTURES TRADING ,book by Jay Kaeppel
    .He helpd with capital letters & derivatives capital knowledge.
    :p :cool: