Revision as of 21:42, 24 February 2024 edit Mimi Ho Kora (talk \| contribs) Extended confirmed users 760 edits Gap Trading: How to Play the Gap Tag: Visual edit ← Previous edit		Revision as of 00:08, 15 April 2024 edit undo Mimi Ho Kora (talk \| contribs) Extended confirmed users 760 edits →Trading gaps for profit Next edit →
Line 23: ==Trading gaps for profit== Some market speculators "Fade" the gap on the opening of a market. This means for example that if the [[S&P 500]] closed the day before at 1150 (16:15 EST) and opens today at 1160 (09:30 EST), they will short the market expecting this "upgap" to close. A "downgap" would mean today opens at, for example, 1140, and the [[speculator]] buys the market at the open expecting the "downgap to close". The probability of this happening on any given day is ~~around 70%{{Citation needed\|date=May 2019}},~~ depending on the market. Once the probability of "gap fill" on any given day or technical position is established, then the best setups for this trade can be identified. Some days have such a low probability of the gap filling that speculators will trade in the direction of the gap. ==Examples==

Gap (chart pattern): Difference between revisions