Suggestions on finding gaps

[Kennyhas]

I have recently discovered a profitable trading strategy involving opening morning gaps. However the strategy to be profitable means you need to trade the gap almost instantly at the open.

The thing that makes this hard is that I mite be looking at the pre market trading and assume a stock will gap at the open and when it doesn't the oppertunity is gone for another day.

Is there anyone who can suggest a website or stock scanner that mite be able to show for certain opening gaps before the market opens, so I am prepaired to implement my strategy at the opening bell and avoid disappointment when the stock doesn't gap?

 

[bhristov]

Place an at open limit pre market hrs order above or below the desired threshold for a gap if it opens outside ur range u get filled and if it doesn't ur order expires.

Pretty straightforward.

 

[toc]

If the bollinger bands are in a squeeze like pattern i.e. sideways price movement for some time then usually the breakout is fairly explosive and at times results in price gap.

As to which day and which direction this gap will occur is little tough to predict.

One thing I have learned is to not try to predict the price pattern formation but rather play the breakout once the formation is in place.

 

[Bob111]

Quote from Kennyhas:

I have recently discovered a profitable trading strategy involving opening morning gaps. However the strategy to be profitable means you need to trade the gap almost instantly at the open.

The thing that makes this hard is that I mite be looking at the pre market trading and assume a stock will gap at the open and when it doesn't the oppertunity is gone for another day.

Is there anyone who can suggest a website or stock scanner that mite be able to show for certain opening gaps before the market opens, so I am prepaired to implement my strategy at the opening bell and avoid disappointment when the stock doesn't gap?

how long did it take for you to 'discover' it?
it you short any gap > let say 2%(more or less-doesn't matter) up or long any gap 2% down-you will have ridiculously profitable 'strategy'
the problem is-in reality you will never going to get filled at those prices. NEXT!

 

[jack hershey]

Quote from Kennyhas:

I have recently discovered a profitable trading strategy involving opening morning gaps. However the strategy to be profitable means you need to trade the gap almost instantly at the open.

The thing that makes this hard is that I mite be looking at the pre market trading and assume a stock will gap at the open and when it doesn't the oppertunity is gone for another day.

Is there anyone who can suggest a website or stock scanner that mite be able to show for certain opening gaps before the market opens, so I am prepaired to implement my strategy at the opening bell and avoid disappointment when the stock doesn't gap?

Almost all days gap.

Record the close value of RTH.

Note the sentiment of your hold at the close.

Use your system to enter with a market order as the market opens. (or a minute before open)

 

[Bob111]

---Use your system to enter with a market order as the market opens. (or a minute before open)---

this is where OP is going to have problem. and if he is brave enough to try it with real money anyway-there is a little extra bonus surprise is waiting for him(on top of what i just said above)

as for topic itself-

https://www.interactivebrokers.com/...k/technicalanalytics/market_scanner_types.htm

all gappers that have trades are there

 

[Kennyhas]

Quote from Bob111:

how long did it take for you to 'discover' it?
it you short any gap > let say 2%(more or less-doesn't matter) up or long any gap 2% down-you will have ridiculously profitable 'strategy'
the problem is-in reality you will never going to get filled at those prices. NEXT!

If use financial spread betting this won't be an issue, the only thing is the margin if you keep this tight then it will be profitable a high percentage of the time.

 

[Kennyhas]

Quote from bhristov:

Place an at open limit pre market hrs order above or below the desired threshold for a gap if it opens outside ur range u get filled and if it doesn't ur order expires.

Pretty straightforward.

Could you give me an example of this I don't quite understand fully. Thanks

 

[Kennyhas]

Quote from jack hershey:

Almost all days gap.

Record the close value of RTH.

Note the sentiment of your hold at the close.

Use your system to enter with a market order as the market opens. (or a minute before open)

For this to work if would need to be a gap of 3% or more, hence me looking for a specific website or scanner to provide this.

Also what is the RTH?

 

[Bob111]

Quote from Kennyhas:

If use financial spread betting this won't be an issue, the only thing is the margin if you keep this tight then it will be profitable a high percentage of the time.

1)the 'good ones' won't be on the list of betting. and i'm pretty sure you can't bet on ANY stock that traded in US markets. IF you can-let me know,we will be multimillionaires in less than a year
2)how you going to handle event\day,where whole market is up\down let say 2-3% from previous close and you have to enter into a hundreds of stocks at same time?

RTH is regular trading hours