Trading Gaps: most important factors to consider

Discussion in 'Trading' started by rmyers11, May 25, 2019.

  1. Nobert

    Nobert

    Then it would analyze, 10 yrs chart, made of 1 min candles, in a splash of second (?)
     
    #11     May 25, 2019
  2. dozu888

    dozu888

    no... what I meant was in longer time frames there are so few stories that machines don't have much to learn :)
     
    #12     May 26, 2019
    sysdevel99 and Nobert like this.
  3. comagnum

    comagnum

    Breakaway gaps & island gap reversals when the RVOL is spiking way over the long term avg by at least 4X can make for some great trade setups for day & swing traders - these gaps show sentiment at extremes - this is is a good way to get into the big parabolic moves that are highly directional- making a large reward to risk skewed in your favor.

    The biggest moves typically are from breakouts after several months of price consolidation - unexpected news is often the catalyst to spark the stampede by the mobs lined up for miles to get in or out.
     
    Last edited: May 26, 2019
    #13     May 26, 2019
  4. LanceJ

    LanceJ

    I trade YM gaps. I try to put together a recipe of why gaps should fade or not. I look at longer time frames to check on trends, then to a 30 min charts to see if anything technical is developing, volume. I watch for exhaustion and break away gaps especially close. I find they give free trading options to gain entry & exit. I find all gaps fade eventually. Some quicker than others. I think short stops makes trying to fill these gaps unprofitable.
     
    #14     May 26, 2019