ATTN: PLAYING morning gap up ???

X

xtrader

Will there be any entry opportunities at the open?

FADE - no way
GET LONG - at these prices?

BUY ON DIP - will there be a signifigant dip in the AM?

What is a trader to do?
 
Big gap up and drift lower. Wait 3 candles to confirm, then take a short and pivot on down. So far today it's been good for 5 ES per contract
 
How is that different from any other large gap? I understood that a GnC occurred during a gap in the opposite direction of the previous day's trend, e.g., a gap below yesterday's low.
 
A gap-n-crap opens at the high and just starts deteriorating. Take a short, set your stop at the high and ratchet it down as each lower pivot high forms.

Eventually you'll get a higher pivot low - usually meaning the end of the run. Exit and wait for a new signal.

Today I shorted ES at 1142 andcovered at 1137 - 5 pts per contract

Also the ES came right down to the 50sma. Not part of my daytrading plan but worth mentioning since that 50 seems to be a magnet/bounce-off point
 
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