Trading opening gaps - is it a viable strategy?

[tiddlywinks]

%%
Conflate mean to bring together LOL; you cant have any price with out volume.
Dont confuse my preference for a requirement; that is a wrong assumption on your part. + its a matter of public record with me= prices goes up or down with or any kind of volume.
In other words, post market is irregular market, regardless of whatever post irregular market volume is .
Sounds like you are confusing the word conflate with preference or requirement , that's wrong; i did not limit it to any increase in volume , that was simply mentioned.
But good reminder on my conflate of price + volume position.

I think we agree.

you cant have any price with out volume.

prices goes up or down with any kind of volume.

On this we do agree.

 

[murray t turtle]

I think we agree.




On this we do agree.

%%
Exactly

 

[SunTrader]

If you think about it (hint the topic title) price does sometimes move without volume.

 

[mason macgregorson]

Hi everyone, I've noticed that the inverse ETFS like the SPXU and SQQQ tend to gap up at the opening bell during the market correction a few times a week. I notice they gap up much more than they gap down (during the correction).

Have any of you bought the ETF the day before just before closing bell and then held it overnight with the hopes that the ETF will gap up the next morning for a quick profit?

Overnight risk is something to be carefully considered with this strategy.

Is this a losing strategy?

Thanks

there are 5 rooms with the word gap in their name; none of them trade the gap and there is no track record of gap performance anywhere. Same for Fib, Gann, etc.

 

[sysdevel99]

Hi everyone, I've noticed that the inverse ETFS like the SPXU and SQQQ tend to gap up at the opening bell during the market correction a few times a week. I notice they gap up much more than they gap down (during the correction).

Have any of you bought the ETF the day before just before closing bell and then held it overnight with the hopes that the ETF will gap up the next morning for a quick profit?

Overnight risk is something to be carefully considered with this strategy.

Is this a losing strategy?

Thanks

No idea if you just limit it to these ETFs.

In general backtesting fading the opening gap is a winning strategy if you include super liquid stocks (go long/short at open and close trade at previous close price on penny wide bid/ask stocks).
It's not something that you can easily trade in real life though, even if you fully automate

 

[SunTrader]

Scott Andrews knows his stuff - Gaps. Research and all:-

http://dl.fxf1.com/files/books/english/Andrews, Scott - Understanding Gaps.pdf

 

[murray t turtle]

If you think about it (hint the topic title) price does sometimes move without volume.

%%
Seldom if ever; looks like he is mostly right. But i seldom get the opening print, maybe you do\LOL.
That'$ the good thing about capital markets;
even if it looks like i sometimes get an early or open print order the ETFs had plenty of volume before i ever put my order in........................................