How to Treat Gap Openings? | Blog Brings Profit For You
  • Recover Lost Money Plan

    A number of traders have lost their money in the market due to wrong trading advice or wrong decisions and emotions. We keep on getting a number of requests for helping these traders recover their lost money. Thus, this was the genesis of Recover Lost Money Plan. We are proud to say that till date we have helped 1290 people recover their lost money. Recover Lost Money in Market

  • Our Most Successful Intraday Tip

    Jackpot tip, as the name suggests has the potential to make you a Millionaire as it is not the number of tips one trades; but it is the accuracy of a single tip which has the potential to make you a Millionaire. This tip is a value for money for all i.e whether one can see the trading terminal or not or is dealing through a broker on phone at BSE, NSE or in Future and Options segment.
    Click on Jackpot Sure Shot Tip to know more...

Subscribe to this blog

Subscribe to full feed RSS
What is Daily Market State???
Enter your Email


Preview | Powered by FeedBlitz

How to Treat Gap Openings?

Posted By On 10/23/2010 02:12:00 PM
A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open". Gaps that are less than 4 points on the SP Future tend to get filled in the same day, especially Tuesday through Thursday. Turns will occur within 20 to 40 minutes after the open. A trader must be on the lookout for a reversal as soon as early momentum is lost.

A gap into a good support /resistance zone is almost always a good "fade" - with stops no more than 1 point on other side of the support /resistance zone. (A "fade" is simply entering a position opposite of the direction of the gap. If the market gapped down, a "fade" would be entering a long position (buying) in to the selloff.)
Click Here to Get Free Stock Market Technical Analysis Tips and Charts in Email

Most Read Content