Now that is what I call a gap

[#1]

Gap traders licking their lips in eager anticipation?

[#2]

Doubtful to it being closed today, unless any good news from Japan..

[koos2]

Yip.

[#4]

Boet, Asian markets fell almost as bad yesterday, but we didn't even blip. This is all overnight futures action - gap could easily close. Just trade it like any other gap

[richardw]

What's the difference between this day and the "big gaps indicate direction" day?

[#6]

I agree good chance for gap close.Wave 4 up.We at 127 fib level.Just be patient as we might go to 161 level before gap close.

[#7]

Really simple. I am a swing trader, so I look for indications that the gap close has run out of steam. Today, I shorted pre-market at 29216, but would have exited at around 29230, as my candlestick pattern would have been negated. I am still in, but will exit at my entry point. I will go long at 29250 for a gap close play - unless we get a really convincing engulfing candle at these current levels

[#8]

To add to my comment, in answer to your question Richard - gaps are indicative of overall direction, IMO, but that doesn't mean a gap won't close - it just means that my trading rules are to look for short setups. Having said that though, a gap close trade is a pretty powerful, so it is one setup that I will trade contrary to my short setup rules, if the gap is big enough.

[richardw]

Just for the record, I bought a long at about 8:31 :)

[#10]

At what price, if you don't mind me asking? You will need to keep your stops quite big to ride out the FTSE opening volatility, since you don't have a lot of protection, in terms of gains, IMO

[Flyguy]

...and more downside

[#12]

nope

[richardw]

27120 on the ALSI Mar-11 (currently 27180), which was in hindsight a mistake since it'll have to be rolled - I forgot that June opened today.

[SimonPB]

roll only on Thursday ..

[#15]

Skaap.What exist strategy do u use for this gap.I have a trailing stop of 100.Will posibly reduce to 50.What do u recommend?

[koos2]

Please clarify, what is your roll-over hindsight mistake? I don't understand. You just get charged for 1 leg on roll-over, or do you lose out somewhere else? I don't get the mistake..

[#17]

I don't use trailing stops, I take profit, based on price action depicted by candles. If I exit prematurely, and the market continues, then I have what I call a 'hounds of baskerville' situation (read Van Tharp for an explanation), and I get back in. Market is trending in what I call a 'reluctant uptick'. It is moving up, but not very convincingly. A 50pt trailing will get you stopped out almost certainly. I have exited 27240, because price action didn't support the breakout. I like to see volume spikes at least in support of a breakout.

[john_1]

your reluctant bounce should be viewed as a better selling oppertunity to get shorter

[#19]

Thanks John,you are correct!

[#20]

Nah, my rules don't allow for this. New daily highs formed after FTSE opening and a huge amount of price resistance at our opening. Each to their own, I guess