Funny that you bring this up. As a swing trader I was wondering how the hell could day traders make money when a stock jumps up 2% or more from overnight news or earnings or whatever? The move is done largely by the time market opens. As a swing trader I can tolerate the swings in price because of how I set my stops wider than a day trader and I also tend to buy at support. Many of these gaps tend to occur to shake out weak longs and weak shorts with tight stops before eventually continuing in their intended direction. A recent example in MOS shows what I mean. I bought at support at $30.31 with several gaps in price both up and down only to see intended direction appears to be continuing. Notice the blue support line has not been broken. I dont understand and I do not day trade but to me looking at charts like this make me think its MUCH more difficult than what I do.
View attachment 170761
