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fading the gap FIO-wiki

  #3 (permalink)

KNOXVILLE TN.
 
Trading Experience: Advanced
Platform: nijia trader
Broker/Data: A.M.P. I.Q. ....C.Q.G.
Favorite Futures: ym
 
Posts: 523 since Mar 2012
Thanks: 104 given, 256 received

gaps


there are mainly 2 kinds a inside range gap and a out side range gap. what ever the closing price or pit settlement is . if the market opens below or above that price is a gaped that much. the inside range gap will fill 80% the same day. the out side will get a 60% part fill the same day. the larger the gap the less chance it will fill . if price trades above or below that gap for 2 or 3 trading days the retest of the gap will hold a high % of the time. how to trade that is were the problem comes. to trade the gap fill you almost need to be able to I.D. a opening drive , opening test drive, open action, and open rejection in real time. that is not so easy. as an example if you have a open action that means the market is grinding very slow filing the gap. you have to I.D. that in real time and not trade it. you also have to I.D. when the tempo changes from slow to fast the other way. that is the trade you want to take. hope it helps

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