Trading The Opening Gap

Dazz said:
I agree with Cannon, these rooms claim to grade the gap: none have a track record

gapedgetrading.com
gapswingtrader.com
gorillagaps.com
lazygaptrader.com
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Yeah, figured there was too much BS spewing around.

From my perspective, if I have an edge, why the hell would I be so willing to broadcast it and show it to other people?

Just trying to bounce ideas so that I can get myself in the right direction, I appreciate the input.
 
This is an interesting article. I think I got it off the internet awhile back, so it is/was public domain. I've not used any of this, but maybe it will give people some ideas.
 

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Tall Mike said:
Hi guys,

Does anybody here use gap openings in their trading?

I was trying to do some research into developing a strategy around this. From what I can see so far, it looks to me that most gaps do close, however, I am stuck as far as trying to develop more parameters on how to put together a day trading strategy around this.

Do any more experienced traders have any advice on this?

Thank you in advance!
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Degap the previous day's RTH close to the current RTH open to see the continuity of context - like-to-like comparison of PriceVolume Relationship that is similar during the RTH.
 
Trading gaps can result in close to 100% in successful trades if you are prepared to hold the stock beyond intraday, as long as you are trading stocks with long term alphas greater than 1. In the video example the guy is trading airlines. He may be good at what he does. I wouldn't trade gaps in distressed companies, as a noob or pro.
 
Look at today's gap runners I traded SCO UVXY TZA FAZ etc

fazgp.jpg
 
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Tall Mike said:
Thanks, ill def take a look at this.

I am struggling to really find a strategy that suits my personality and that has an edge. Most of the shit on youtube just talks about "patterns" but the reality in my opinion is unless somebody can show me a statistical edge with that strategy then it's useless. Anybody can cherry-pick and made a method look great on youtube.

I feel like I am the type of person that can really only focus on one thing at a time, and that is why I figured let me try something like the ES rather than individual stocks but I am just not even sure where I can even start testing something to see where there may be an edge in day-trading the ES.
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The road will be disaster to those who don't even know differences between trading leveraged products and stocks. And those who speak of strategy knows nothing about chart patterns. You know to study couple years to better understand markets have differences and know like in breathing about chart patterns in up trend, downtrends, chop, with trends, against trends, knowing differences of setting up retail and trading against them.

Why should anyone show you anything? This is a dog eat dog war against others, your failure will benefit others. You think anyone with decent knowledge going to show you what it takes to be successful? Hell no. Stocks trends better than futures cause futures are a hedge. Most will steer you into signals which is but 1% and last in a trading plan. If you can't understand what has happened to the left of price action, much of the past will tell one whether to trade a signal or not. Risk management is my edge, taken last 10 years of my 42 years of trading to see huge differences in ways I once thought. The greatest risk now for me is scalping, whereas when I do long term or as low as 30 minute timeframes gets hedged and at time of entry I have positive expantentcy. Drawdowns are now very low, losing trades are very low, and when you hedge-perfect entry not required, but you better be very prepared to be able to read charting as well as I do, or you will be bait.
 
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