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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: SE who wrote (7355)	10/28/1998 9:33:00 AM
From: Tom Trader	Read Replies (1) \| Respond to of 44573

Scott--re gaps and playing them I have never really tested this out using price data because there is a judgemental aspect to it. Like yesterday, I did not short it, in part because I felt that there was a fair shot that it would break-out. It turned out that I was wrong and that it would have been a good trade. Generally a counter-trend gap has the best chance of being filled and has the highest probability of success. Works with the spoos and the bonds -- not with the currencies where overnight action in overseas markets are likely to cause gaps that are legitimate price action. As I said, the reason that this seems to work, is that large gaps are generally caused by the public barging in and they are often wrong. As always one has to use stops lest the gap is not going to be filled anytime soon.