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Closing the gaps [live real trading]
Posted: Mon Mar 29, 2010 7:06 pm
by newschool
Too easy to be true? We'r talking 50 pips with minor drawdown here...
Posted: Mon Mar 29, 2010 7:54 pm
by bredin
Yeah, it was a good week for closing the gaps
G.
Posted: Mon Mar 29, 2010 9:01 pm
by TheRumpledOne
It's a nice trade to start the week off.
Posted: Mon Mar 29, 2010 11:11 pm
by tmanbone
TRO mentioned somewhere in the forum that the Fri - Sun/Mon gap fade was a winner. Nice.
Posted: Mon Mar 29, 2010 11:44 pm
by noone22
Isn't a line from Friday close
(assuming, it's gap on Monday open)
a zeroline.
If yes - one could trade it as zeroline.
If not - why not?
Posted: Tue Mar 30, 2010 12:20 am
by TheRumpledOne
Yes, statistics show the gap usually closes.
Posted: Tue Mar 30, 2010 12:48 am
by bredin
its about 95% likely to close at some point during the week
but off the bat theres almost always an opportunity to bank some pips in the first hour or so.
G.
Posted: Tue Mar 30, 2010 2:11 am
by newschool
noone22 wrote:Isn't a line from Friday close
(assuming, it's gap on Monday open)
a zeroline.
If yes - one could trade it as zeroline.
If not - why not?
I am not an MZ pro, but could we consider the gap to be a huge momo candle (basically no wicks, only a full body) wich needs to be retraced at least at half ?
Posted: Tue Mar 30, 2010 3:53 am
by noone22
Yeh, and it is clear, why gap would be closed -
very similar to zeroline method.
Not clear, why gap itself is formed.
From 10 to 100 pips gap - is usual story,
does this mean, that there are no buyers/sellers
withing this range?
Posted: Sun Apr 11, 2010 8:19 pm
by newschool
Many big gaps today.
Let's see how it turns out, im having fun.