Trading The Opening Gap

Discussion in 'Index Futures' started by Tall Mike, Jun 24, 2020.

  1. What data set are you basing that off?
     
    #31     Jun 25, 2020
  2. Approx. last 7 years. My own data.
     
    #32     Jun 25, 2020
  3. Not really interested in debating it. I just said what I use and why. I found the numbers to be statistically significant and that's sufficient for me. :)

    I just googled and one of the first pages I found on gaps was this one:

    https://www.simplertrading.com/trading-the-gaps/

    upload_2020-6-25_19-0-3.png
     
    #33     Jun 25, 2020
  4. SunTrader

    SunTrader

    Yes John Carter who I referenced previously, does say in that image to match regular stock trading session, which btw is an except from a SFO Magazine article that I have still (Gaps Force Players to Show Their Hands) from January '04. But he also says in his book 2 years later Master The Trade (2006), which I have as well "I first set up a special intraday gap chart that starts collecting data at 9:30am Eastern and stops at 4:15pm Eastern. This is so I can view the gaps. These gaps won't appear on charts that carry 24 hours worth of data or as regular session data on futures market."

    Think he either forgot he changed it up or believes like yourself it doesn't matter.

    Whatever works ... works. :thumbsup:
     
    #34     Jun 25, 2020
    Laissez Faire likes this.
  5. Tradex

    Tradex

    I suggest your read "The Compleat Guide to Day Trading Stock" by Jake Bernstein, it will show you a few techniques for trading gaps.
     
    #35     Jun 27, 2020
    Tall Mike likes this.
  6. If gaps or missing the gaps bother you, then learn to hold stuff overnight. Use spreads or options if bothered by outright position. The gap can be your friend or your foe but day trading the gap is very dangerous. You might want to wait for a pullback and go with the trend but sometimes the pullback does not happen that day, it may happen NEXT day! If you fade the opening gap you have more balls than the brain... But it might work. Good luck!
     
    #36     Jun 27, 2020
    Tradex likes this.
  7. SunTrader

    SunTrader

    Backwards.
     
    #37     Jun 27, 2020
  8. KCalhoun

    KCalhoun

    #38     Jun 27, 2020
    Tall Mike likes this.
  9. I prefer to have a position of the stock/commodity that gaps...thus trade a small amount so I can sleep. I know this makes me a non-daytrader but I have tried to be a scalper prior to the days of decimalization and lost my shirt.
     
    #39     Jun 27, 2020
  10. KCalhoun

    KCalhoun

    Me too re swingtrading small size for peace of mind. My course is for daytrading open gaps, like I did in inverse etf SCO for a win on Friday
     
    #40     Jun 27, 2020
    TimtheEnchanter likes this.