how to read the gap when you do swing trading?

Discussion in 'Technical Analysis' started by flyingforget, Nov 24, 2008.

  1. some markets is very volatile ,HSI is such a market.it is highly correlated with S&P 500 index ,so there are many overnight gaps,how to read them thank you !
     
  2. simki

    simki

    If you say that HSI is "highly correlated with S&P 500 index", then you should know how to read them.
     
  3. Brandonf

    Brandonf ET Sponsor

  4. =================
    FlyingGet;

    Highly correlated with S& P, ok;
    then gaps are important part of swing traders profit.

    Generally true, most gaps in a bear market are bearish;
    & you can improve on that, when SPY [also highly correlated to S&P] was down 7 days in a row,OCT 2008, not so bearish , even in a bear market.........................................................................................

    And when Prince Al last week,,and US treasury[Sunday] start throwing /buy money @ Citigroup;may get some upticks not really deserved, but end of day , even bear markets have bear rallys.LOL
    :D