Trading The Opening Gap

[Laissez Faire]

Whatever works ... works.

Today's gap from yesterday's Close @ 4:00 worked quite well today.

 

[murray t turtle]

From my colleague Joe Easton:

I advise against this strategy. You are attempting to make a strategy based on assumption. The assumption being that most gaps close. The reason for gaps is legitimate and should not be expected to retrace. Personally I would favor a strategy that went the same direction as the gap instead of fading the strong price action on a pullback towards the open.

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Most gaps go in the direction of the main trend/up in a uptrend, that's how mutual funds make millions/billions.;
but gap down in a bear market which we are not in. DAL is below 2oodma, so that's a general statement.
Adding any kind of leverage make any gaps more risky Gaps can keep going years; I just clipped an IBD newspaper NVDA gap of $77 has not closed yet/LOL. I don't position trade SIF