do a search on the blog for the 15 min gap rule. Also I
have two custom gapless MA's and a gapless Parabolic sar (that are
not affected by gaps), so when the market gaps up, as long as the
price is above the PSAR and the gapless MA's, you buy the
gap. however those are
proprietaryindicators. The gap system doesn't tell you
about the whole day, just what to do in the morning. use the
15 min gap rule below
Remember to employ a 15 - 20 min
gap rulei.e. see how the
market holds up the 1st 15 - 20 min i.e.
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!
here's an example, the 7/21 EMA
crossover is not part of the
gap rule
do a search on the
looks like another big gap, every day the market gaps ...
Posted by matt on 9th of Apr 2009 at 09:59 am
do a search on the blog for the 15 min gap rule. Also I have two custom gapless MA's and a gapless Parabolic sar (that are not affected by gaps), so when the market gaps up, as long as the price is above the PSAR and the gapless MA's, you buy the gap. however those are proprietaryindicators. The gap system doesn't tell you about the whole day, just what to do in the morning. use the 15 min gap rule below
---
Remember to employ a 15 - 20 min gap rulei.e. see how the market holds up the 1st 15 - 20 min i.e.
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!
here's an example, the 7/21 EMA crossover is not part of the gap rule
Here is the 15 min gap rule
Posted by blue on 28th of Apr 2009 at 10:26 am
as initially described by Matt (see toggle)
Thank you !
Posted by brallen1 on 9th of Apr 2009 at 10:02 am
Thank you !