Hey oh Boring one! What do you think of the action today, right in the middle of the gap and going no where fast! My money is on the bulls but it is an intersting development dont you think. I would like to see a propper closure of this mornings gap and then an abrupt turn to close yesterdays gap then of to new highs!
Hi John have been learning a little about gap trading and SSF i wonder if you can tell me the alsi opened higher than yesterdays close which now creates the gap. 1. How do you know when is the right time to get in to fill this gap. 2.what derivatives are you using SSF ? and 3. when you want to get out of the trade after your target is reached how liquid is it. Thanks in advance sorry for all the questions still learning.
The alsi futures is highly liquid, no problem. As for trading the Gap.. there is no such thing as certainty in he markets. gaps included.. but they do have a very high probability of closing even if they do sometimes take time. the Gap up tend to turn and head south slower than a Gap down... there are more bulls then bears. Never try trade a gap that has a fundamental reason..Interst rate changes etc.. The one way to trade them is by not trading them ie.. wait for them to close before entering any long trades on a gap up etc... Its as much art as it is skill as to were to enter the trade. there are also 2 kinds of Gap players.. those that trade untill the fresh air is closed like this morning and those that trade untill the closing price has been reached. so expect a retacement on the fresh air close.
Very interesting Day the whole day traded in the gap As it stands we have a huge island top on the Alsi 14 days of trading I fully expect it to get some suport, but if it does not we could be in for a very real correction. As I said yesterday we are on support and have bounced higher.