Trading opening gaps - is it a viable strategy?

Discussion in 'Trading' started by trendisyourfriend, Jul 15, 2022.

  1. I don't count it as a gap fill. They'll be back to fill it.
     
    #11     Jul 15, 2022
  2. SunTrader

    SunTrader

    Which? Yesterday?
     
    #12     Jul 15, 2022
  3. The one at 3803
     
    #13     Jul 15, 2022
  4. SunTrader

    SunTrader

    You must be talking yesterday's 400pm stock market close?

    If so, why would you use that time as any kind of marker for the futures market? eMini close doesn't happen till 500pm EDT
     
    #14     Jul 15, 2022
  5. Because those gaps matter for regular trading hours, which is often relevant for SPY and thus ES.

    Edit: And the close is the 4pm close from July 13.
     
    #15     Jul 15, 2022
    KCalhoun and murray t turtle like this.
  6. SunTrader

    SunTrader

    Ok well I was referring to trading eMini gaps. Though I realize that is not what OP was asking.

    But don't know how we got to two days ago, when my screengrabs were for yesterday and today?
     
    #16     Jul 15, 2022
  7. tiddlywinks

    tiddlywinks

    There is a clear demarcation between RTH and after/pre market volume. There is a similar demarcation during RTH sometimes referred to as lunchtime.

    Traders choice to acknowledge or not, undeniable changes in trading environment.
     
    #17     Jul 15, 2022
    murray t turtle likes this.
  8. %%
    TRUE; but post[after 3:00 CST] market volume is so light prices jump around strangely.
    A few times, huge buy post market volume will help gap up SQQQ+ SPXU, which he mentioned.
    But those are inverse ETFs, so even that would be mostly for bear markets.
    SQQQ, TZA,SPXU ,SDOW\gapped down today but still up nicely for the week; looks likely weekly close will be positive% for those-20 minutes 'till close[RTH]
     
    #18     Jul 15, 2022
    KCalhoun likes this.
  9. tiddlywinks

    tiddlywinks

    Volume is zero-based.
    It is wrong to conflate high(er) volume with increasing prices and inversely, it is wrong to conflate low(er) volume with decreasing prices.
     
    #19     Jul 15, 2022
    murray t turtle likes this.
  10. %%
    Conflate mean to bring together LOL; you cant have any price with out volume.
    Dont confuse my preference for a requirement; that is a wrong assumption on your part. + its a matter of public record with me= prices goes up or down with or any kind of volume.
    In other words, post market is irregular market, regardless of whatever post irregular market volume is .
    Sounds like you are confusing the word conflate with preference or requirement , that's wrong; i did not limit it to any increase in volume , that was simply mentioned.
    But good reminder on my conflate of price + volume position.
     
    #20     Jul 15, 2022