For those who want to win at this game, make sure you commit the below strategy to memory......It is not a cure-all but it gives you
the beginnings of how to do battle with the big boys....
Basic Gap Trading Strategy
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 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..
TATRADER |
