Posted by 21 December 2004

Gaps That Don’t Come Back

David Nassar has written a good article about how to trade stocks that gap. He argues that if a gap is more than 5% the more will continue in the direction of the gap. He also examines the mindset (psychology) of traders who play gaps: A gap is a term used by technicians to describe [...]

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Posted by 22 March 2004

Fall into the Gap?

We’re set to gap down on geopolitical concerns in Taiwan and the Middle East. Taiwan’s market got slammed to limit down (7%) within minutes of opening due to the controversy around their recent elections and the allegedly staged assassination attempt. I have to admit that this combined with what happened in Spain is bringing up [...]

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Posted by 16 December 2003

How to Trade Opening Gaps

Here’s another good (and timely) article by Dave Landry — Opening Gaps: Trade ‘Em, Fade ‘Em, Or Ignore ‘Em? (I’ve archived the article here)

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Posted by 7 July 2003

Rule #1

I’ve had this rule taped to my monitor for the past 3 years: On gap-up openings, buy above the 10:00 high. That rule has saved be a lot of money. When I started trading, I’d get all excited when I saw the futures flying pre-market. I’d rush in to buy at the open, thinking I’d [...]

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