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Strategies & Market Trends : LastShadow's Position Trading

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To: LastShadow who wrote (662)9/25/1998 5:10:00 PM
From: Jay Lyons  Read Replies (1) of 43080
 
Lastshadow-

If you feel better this weekend and have the time, could you lend some guidance on the Modified Gap Stratagies?

1. What is the relationship between yesterday's high/low/closing to the day's opening, and how do they relate to computing buy/sell triggers.

2. I have seen both the average (50%) and 75% of the first hour's high/lows mentioned. I've been using 75%, but I'm not sure about this.

3. So far, gaps been berry, berry good to me. I keep waiting for the other shoe to drop. It occurs to me that just as I did so well in the first half of the year because going long in tech everyday was suited to that market, playing gaps is especially suited to this market (i.e. one that has an extreme futures-dictated opening followed by a reversal). Would appreciate your thoughts.

Muchisimo gracias,

Jay
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