do a blog search, it's 15-20 min. You draw a horizontal line on
the gap low and the 15 min candle high. We did not follow
through past the 15 min high, only tailed up through it
briefly.
Anyway it's just a guideline
as far as the market, let's just see if we now can stay above
support and hold the 1150 area or not
Draw 2 lines; one at the lows and one at the highs of the 1st
15 - 20 min. If the market can stay above the 15 min high candle
bar, the it is considered positive and the gap could possibly hold
up for the day , however if the market falls below the 15 min low,
then the likelihood of the gap fading increases greatly.
Realize that this is just a technique only and doesn't work all the
time!
matt - that chart you posted -- old one from Ravun? -- seems to
say that you bet in the direction of the first close outside of the
15 min opening range. Today that would have been short and
would have been -- so far -- correct.
that's what the old 15 min gap rule always said, you draw a
horizontal line on the low of the first candle, then draw a
horizontal line on the 15 min candle high, if you fail to follow
through past the 15 min high, it's negative, if you break the 1st
bar low, it's of course negative as well
so yes obviously today the gap indicator showed a negative bias
by not breaking the 15 min high and closing below it, and then
again by closing below the opening bar low
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do a blog search, it's
Gap Indicator?
Posted by matt on 30th of Sep 2010 at 10:37 am
do a blog search, it's 15-20 min. You draw a horizontal line on the gap low and the 15 min candle high. We did not follow through past the 15 min high, only tailed up through it briefly.
Anyway it's just a guideline
as far as the market, let's just see if we now can stay above support and hold the 1150 area or not
Here's an old example with a 3 min chart
http://breakpointtrades.com/file.php?id=6458
Draw 2 lines; one at the lows and one at the highs of the 1st 15 - 20 min. If the market can stay above the 15 min high candle bar, the it is considered positive and the gap could possibly hold up for the day , however if the market falls below the 15 min low, then the likelihood of the gap fading increases greatly. Realize that this is just a technique only and doesn't work all the time!
gaps
Posted by Michael on 30th of Sep 2010 at 11:00 am
matt - that chart you posted -- old one from Ravun? -- seems to say that you bet in the direction of the first close outside of the 15 min opening range. Today that would have been short and would have been -- so far -- correct.
that's what the old 15
Posted by matt on 30th of Sep 2010 at 11:08 am
that's what the old 15 min gap rule always said, you draw a horizontal line on the low of the first candle, then draw a horizontal line on the 15 min candle high, if you fail to follow through past the 15 min high, it's negative, if you break the 1st bar low, it's of course negative as well
so yes obviously today the gap indicator showed a negative bias by not breaking the 15 min high and closing below it, and then again by closing below the opening bar low