Trading Gaps and Breakouts (Stocks)
- Thread starter Brandonf
- Start date
Brandon, I like your style.
I am currently developing my own method for playing gaps in equities which seems quite similar to yours.
I will be reading your posts with much interest.
I think it is obvious why stocks with larger gaps tend to fill in less than smaller gaps. And that is because larger gaps usually have news to back them up or to "prop them open" you might say.
Anyway, I like your ADI example. For me, I'm specifically looking for gaps that will likely stay open (so i can go with the trend) rather than gaps that are likely to fill in. Thus, as a first screen I'm looking for stocks that are gapping minimum of $1 for every $20 stock price (basically 5%).
Keep up the posting brandon, don't let the idiots get you down.
I am currently developing my own method for playing gaps in equities which seems quite similar to yours.
I will be reading your posts with much interest.
I think it is obvious why stocks with larger gaps tend to fill in less than smaller gaps. And that is because larger gaps usually have news to back them up or to "prop them open" you might say.
Anyway, I like your ADI example. For me, I'm specifically looking for gaps that will likely stay open (so i can go with the trend) rather than gaps that are likely to fill in. Thus, as a first screen I'm looking for stocks that are gapping minimum of $1 for every $20 stock price (basically 5%).
Keep up the posting brandon, don't let the idiots get you down.
You are definatly correct on both accounts. Its important to keep in mind a few things. First, just because you have a large gap rarely means you would automatically go with it. To do so would likley result in loses, you need to wiat a proper setup to occur. It is definatly very easy to be mislead by statistics and probability. Guru's do it all the time, so whenever some one says something has a 90% chance of happening, your next reply should be so what? ?How can I use it? Can I? You may find that its not of any real use.
The size of the gaps are a lot like volatility. It will always be in flux, but will stay around a median area for the most part. I find it most useful to just think in very simple terms that a large gap is unlikely to fill and is likely to continue higher if it can take out its first pivot so I want to go with it if it does. A small gap is likely to fill.
Hope this helps.
Brandon
The size of the gaps are a lot like volatility. It will always be in flux, but will stay around a median area for the most part. I find it most useful to just think in very simple terms that a large gap is unlikely to fill and is likely to continue higher if it can take out its first pivot so I want to go with it if it does. A small gap is likely to fill.
Hope this helps.
Brandon
I could, but I'm not likely to do so. I'm willing to share most of what I do whether you pay me for it or not. Some things are not for free though, others are not for sale at all. What I would be happy to do is help you with your own coding as it relates to the info found on this thread and my last one.
Brandon
Quote from Brandonf:
Dell is another one that I traded and gave in the room. I didnt want to come across as being a braggard on an up day thoughIt upsets people.
what upsets people is that you come here cherry picking your very best trades -- ones in this case, incidentally, that most likely had nothing all to do with your alleged setups, but got carried by the rest of the market movement (as is obvious to anyone with half a brain) -- and post them up to sucker all the newbies into thinking you're some trading god..
if you're gonna do stuff like this brandon, then post the losers too. geddit? kinda simple isn't it...
otherwise... what the hell do you think it looks like except you drumming up some busines???
you've said you're gonna be a sponsor here.. great. i'l still bust your balls for the misleading crap you post.
Quote from candletrader:
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Candle, I've got to hand it to you, you really keep things interesting here at ET. That is funny.