few reasons why and how you can tell in advance whether a ga

Learn The Magic of Technical Analysis

few reasons why and how you can tell in advance whether a ga

Unread postby ananey » Tue Apr 30, 2013 10:35 am

Here are few reasons why and how you can tell in advance whether a gap trade will work or not.
1)Firstly Nifty did not produce a strong opening bar, this means the first 5mins of the day, open the 5min charts or 30min charts and see how “healthy” the bar looks. If its weak and timid, expect weak and timid moves.
2) Was the bar red? If the opening bar is not a positive bar in a gap above sideways like today, then there is no point taking longs, we observe this again in the first 5mins of the day( what we call opening bar)
3) If we get a opening healthy green bar, we are ready to buy; but if there is no breakout by by 10:00am then again we cancel our buy orders and sit back

Read and re-read the above, it will save you alot of money in your trading career.

Also, people who dont have time to daytrade and can spend only 1 hr a day, can trade only gaps for a living. You can keep your day job and spend an hour a day or less. On average you should get only about 3-6 trades a month, each last under an hour.
If you have the capital and the identification skills, you can make it work.

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Re: few reasons why and how you can tell in advance whether

Unread postby ananey » Tue Apr 30, 2013 10:38 am

few reasons why and how you can tell in advance whether a gap

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