The gap ang go strategy with stocks, can it be better for intraday trading?
Gap strategy
- Thread starter trader1974
- Start date
But is there any strategy for gap you can not predict?
Sometimes as you know, the opposite happens, after a strong bullish gap the price falls throughout the session, then no, it is not easy to predict what will happen next, however sometimes after a strong bullish gap, the price Climb strongly throughout the session. If for example the gap has been due to news, you never know if the price is overvalued at the opening.
Like currently there is gaps on most of major pairs in currencies, also gold, but I see its continuous up trends on them, that is ok , but I thought you meant trying to predict gap on Fridays before the market closes.
Not to make the fun of OP, maybe it was the translation issue or something (as you mentioned), but i have heard of a close version -
GAP AND BLOW
especially, if chasing the ones, that has lots of gaps in their charts.
WealthSignals
Sponsor
Right, but range bars are chartist's eye candy and aren't tradable.
Why guess? In a platform like Wealth-Lab you could simply backtest it. For example, here we have an intraday gap buyer as a downloadable strategy: Significant gap buyer (intraday)
Of course there's more to it:
Trading Gap Reversals
Gap Buy
Gap Closer Long & Short
etc.
-Eugene
I know it only for intraday trading and it's working great depends on from who you learn it.
need to make a good pre market plan to choose a stock that fits, then use TA, volume and for final conviction Bookmap heat map. It's not an easy strategy
Not all currency pairs show good working out, i.e. closing after their appearance. The best statistical indicator, about 75% shows EURUSD, EURJPY, GBPUSD, GBPJPY. The probability of closing the gap on these pairs is about 70-75%. Moreover, EURUSD has the smallest probability to close these 4 pairs. That is, to trade on the gap closing, you should follow these four pairs. It is even possible to exclude EURUSD and leave only three pairs. And you should not pay attention to the other pairs.