Gaps

Quote from VisionTrader:

What is the secret to making a chart the right size. I am posting it as a .png. I tried making it bigger in my program, not sure it helped.
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Hi VisionTrader,

I don't think JMartinez meant make it bigger...

I think he meant can you change that dark grey background to a lighter color so that the candlesticks can be seen more clearly.

A white creme color background should work great especially when it comes to printing.

Those dark backgrounds eat up a lot of ink.

NihabaAshi
 
Quote from NihabaAshi:

Hi VisionTrader,

I don't think JMartinez meant make it bigger...

I think he meant can you change that dark grey background to a lighter color so that the candlesticks can be seen more clearly.

A white creme color background should work great especially when it comes to printing.

Those dark backgrounds eat up a lot of ink.

NihabaAshi
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Ohhh. Okay sorry. Martha Stewart kind of stuff. I will try to make up a better chart for pictures. No promises though. Thanks
 
Quote from VisionTrader:

Trade GAPS. Predict price direction with a high degree of accuracy.
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Is it possible to predicate gaps (stock for example)? Not neccessarily always accurate. A few patterns would be helpful. For example, certain abnormal trading activity in the last hour.


- oo7
 
Quote from oo7:

Is it possible to predicate gaps (stock for example)? Not neccessarily always accurate. A few patterns would be helpful. For example, certain abnormal trading activity in the last hour.


- oo7
More...

I think this statement has been confusing everyone. What I meant was that I use GAPS to predict price direction. I did not mean to imply that I can predict when a GAP will occur. I am working on it, just can't get the moon to line up properly.

It is important to understand why GAPS occur. News overnight or early morning, pre-market economic data, etc. Learn to distinguish between a justified GAP and an unjustified GAP.

Remember who trades during times when GAPS occur. This is important. Are most of these trades made due to greed or fear??
 
Today's GAP of the Day comes to us from the mini-DOW and was picture perfect. Notice how price reversed, there were a couple nice trades here.

This one filled during the lunch hour. That surge that none of us can understand that always occurs when the big money goes out for lunch.
 

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Quote from VisionTrader:

I think this statement has been confusing everyone. What I meant was that I use GAPS to predict price direction. I did not mean to imply that I can predict when a GAP will occur. I am working on it, just can't get the moon to line up properly.

It is important to understand why GAPS occur. News overnight or early morning, pre-market economic data, etc. Learn to distinguish between a justified GAP and an unjustified GAP.

Remember who trades during times when GAPS occur. This is important. Are most of these trades made due to greed or fear??
More...

on 2/17, most people were not sure about ntes' er. last quarter, ntes dropped like rock after er. it was being sold off most of the session until around 3:05pm. the price popped up slightly (around $1? not sure) on higher volume. i noticed this happened to all three chinese portals at the same time (ntes, sina, sohu).

no one knew what was going on. an experienced guy claimed ntes was 'ready for gap up'. he didn't say why.

this is the pattern i am looking for. but it's difficult to interpret that little spike around 3:05pm, the volume was not that high. how can i tell whether or not it's a valid signal to follow?

on the other side, a court ruling in favor of rmbs was issued the same day after market closed. rmbs surged about $5 in ah trading, and gapped up next day. i don't think you can predicate this one.

i know the last hour trading does have certain significant implication for the following day. i read in a book. the only thing i remember is that the trades in the last hour could be manipulated somehow. i don't remember details.

any idea? comments?

-oo7
 
well todays gap filled nicely, too bad I chickened out of taking it for real, granted I took a simulated short on it with my same parameters and would have been stopped out at 634 so let me take that back, I'm glad I didn't take it. still it filled pretty decisively

-doji
 
Quote from doji:

well todays gap filled nicely, too bad I chickened out of taking it for real, granted I took a simulated short on it with my same parameters and would have been stopped out at 634 so let me take that back, I'm glad I didn't take it. still it filled pretty decisively

-doji
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As I said, not for the weak of heart. You must believe!

With a name like doji, you may be a little undecided at this point.:p

Just keep watching and develop your plan.
 
Quote from doji:

well todays gap filled nicely, too bad I chickened out of taking it for real, granted I took a simulated short on it with my same parameters and would have been stopped out at 634 so let me take that back, I'm glad I didn't take it. still it filled pretty decisively

-doji
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Hi Doji,

What are your specific trade management rules for trading gaps?

Also...when you say 634...are you saying YM (mini-sized dow) ?

NihabaAshi
 
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