One way is to set a stop 1/32 under the previous day's low... On USDI your stop would have been set for today at 3.30 that is 1/32 under the low yesterday of 3.40...The stock got to 3.37 as a low today, I believe....Mark
Here is something all of you should save: It is very good and comes from Jake Bernstein, the gap strategy....
Today, a trader would have sold a long position in WAVX at 2 ticks below 3.30 which was yesterday's high...Name you should have been out around 3.21...Under Gap strategy, number 2 was the one that should have been played today on WAVX...
GAP STRATEGY
1. When a stock gaps down, set a buy order 2 ticks above yesterday's low...
2. When a stock gaps up, set a short order or sell order 2 ticks below yesterday's high..
Delayed Gap Strategy
1. When a stock gaps down, if one hour after trading, the present price is above the opening, GO LONG, BUY..
2. When a stock gaps up, if one hour after trading, the present price is below the opening, GO SHORT, SELL...
1. When a stock gaps down, if one hour after trading, the present price is lower than the opening, set a buy stop order 2 ticks above today's high...
2. When a stock gaps up, if one hour after trading, the present price is higher than the opening, set a short order 2 ticks below today's low..
Regards, Mark |
