DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Dotty who wrote (3736)	9/10/1999 3:56:00 PM
From: TraderAlan	Read Replies (1) of 18137

"Dotty" <g> The morning gap held so it wasn't a sucker gap. Market makers will push price as far as it will go on pre-open good news. If they take the buyers out of the market by aiming too high, the open fails and then you have a sucker gap. Big up and down opens are followed the majority of the time by a period of testing and backfilling. In a very strong (or weak) market, the gap can be followed immediately by another move in the same direction. We haven't had a very strong market since the spring. Use a 5-min NYSE TICK to follow the play of the buying/selling pressure. The change comes when the TICK channel is broken. The expression "Bull Trap" is often used for exhaustion gaps where an overbought market gets one last piece of good news, gaps up and then finds no fresh buyers. The Trap closes when the gap is filled. Alan

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