NIftyMagican : Gap Trading Strategies
Posted: Tue Apr 02, 2013 2:16 amStrategy 1
Gap up.
Whenever a Gap up forms... short the script below yesterdays high. sl todays high. tgt todays gapup
Whenever a Gapdown forms.., buy the script above yesterdays low. sl todays low. tgt todays gap down
(Note : The Gap up or Gapdown must be above yesterdays high or yesterdays low)( for commodity it must break yesterdays high or low frm above or below within 1 hr) (for NSE it must break yesterdays high or low from above or below within 30 mins)
Strategy 2
Whenever a Gap down or Gap up forms... if the closing of anytime frame candle occurs above or below the previous days closing candles high or low's. then go short or long with 2days gap as sl... tgt todays gap
Eg: yesterdays last candle :close : 5355 low: 5350 high; 5360
If today is a gap up day... ex : 5390 : On anytime frame.. if a script moves low & closes below yesterdays low: 5350 i.e close is 5345. then go short with sl as todays gap
If today is a gapdown day ex: 5340 > on any time frame if the scripts moves above yesterdays closing high : 5360 above .then go long above 5360 and sl as todays gap.
Gap up.
Whenever a Gap up forms... short the script below yesterdays high. sl todays high. tgt todays gapup
Whenever a Gapdown forms.., buy the script above yesterdays low. sl todays low. tgt todays gap down
(Note : The Gap up or Gapdown must be above yesterdays high or yesterdays low)( for commodity it must break yesterdays high or low frm above or below within 1 hr) (for NSE it must break yesterdays high or low from above or below within 30 mins)
Strategy 2
Whenever a Gap down or Gap up forms... if the closing of anytime frame candle occurs above or below the previous days closing candles high or low's. then go short or long with 2days gap as sl... tgt todays gap
Eg: yesterdays last candle :close : 5355 low: 5350 high; 5360
If today is a gap up day... ex : 5390 : On anytime frame.. if a script moves low & closes below yesterdays low: 5350 i.e close is 5345. then go short with sl as todays gap
If today is a gapdown day ex: 5340 > on any time frame if the scripts moves above yesterdays closing high : 5360 above .then go long above 5360 and sl as todays gap.