Stock gap trading strategy

Stock gap trading strategy

Posted: chiefff Date: 27.06.2017

The video was recorded by myself today at the market open 9: In fact, many day traders like myself have been using this high probability strategy for years and making a nice weekly income from it. I placed this trade on my own trusted trading platform which is ETX Capital. For a list of my recommended trading platforms and charts see my page on trading tools.

Here is how the strategy is played: If your stop gets hit I do not suggest re-entering the market — for me the gap trade is over for the day. By the way, watch my new video on how you should trade the gap strategy for For details, click here.

If you cannot be bothered to watch the whole video which I recommend you shouldthen here are the main bits:. By the way, in my free trading alerts 3 times a weekyou will also see other trading strategies that I use to day trade the markets. Feel free to try it. Im not after the money so its not necessary a retribution. It is my PASSION also. I would like to have an opportunity to work with you. I have a Bachelor Degree in Administration and Business Management, and Im stuying 2 Masters right now, one of the is about Day Trading.

When you put stop-loss order at 1. When you put stop-loss order at 2 times of the gap and you want to earn ca. Personally, I prefer a ratio of 1: And to conclude, I guess many people think that it is the efficiency of the system is most important, which is obviously wrong. Yes for most strategies you can and should look for at least a 2: Some research has been done on the probability ratio of this strategy by other traders.

As long as you are consistent, you should make it work. I say, Which ever you prefer with your personality. Great presentation, very informative. Will this work on gaps on any chart eg. Hi Dom — you can test it on other gaps if you wish.

But I would stick with the ones on the Dow Jones futures YM. Thanks and regards, Al. Seems like it would be a lot more comfortable to just put in the numbers and check back later and not having to sit in wait for an acoustic signal to click the button. Jared — the answer is yes you can programme it to do that. Some people like the thrill of watching the trade as it happens. But you should also consider many of those start at scratch and have little background or experience.

Here are further thoughts for you guys out there: Only a solid trading plan. But remember, every strategy requires a different stop-loss and trade management. This particular trading strategy works best by giving it lots of room otherwise you would be stopped out too early in the game. But I take your point.

Playing The Gap

Everyone should test a strategy before trying it. And no, trading is not easy. But the rules are simple. Thanks and hope to read your comments in the future too! I am new to day-trading, but not so much to investing in general, and yes I came after watching your awesome performance on BBC.

These might be newb questions, but maybe you could answer:. Insulting The Competition — Is It Going Too Far? Offline Marketing Tips and Information — Free Article Resources. Alessio…thank you VERY much for your videos and blog…you are full of knowledge and have helped me since I am a beginner in the market. I actually heard about the E-mini a few months ago, but decided against it because it seemed too complicated. Now you inspired me to try it!

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Do you recommend trading the E-mini futures over regular stocks? Do you trade the E-mini more than single stocks?

To trade the E-mini, do you have to use tradestation, or can I use an account at etrade or optionshouse?

stock gap trading strategy

In other words, how do you get the ability to trade on the E-mini? Good Job on the presentation there Allessio!! Good education for me. Could we see more examples of strategies? Hey there, I think you did a really good thing on tv. In all my life, I have never seen someone so honest and interesting on tv to listen to. Anyway I think I have read all your posts. This strategy about taking advantage of the opening gap, looks like it just might work.

Love your humble attitude. On your blog I have seen a sign-up form for trading alerts. Thank you for your time. Thanks for your presentations! Actually i never Traded something on the stockmarket but im really intrested in it.

I have some Questions though. Where is your software from? Coud i trade just with an E-Banking Account on my bank? I saw the fees are quite expensive for a beginner who want to start Trading with small money! Do you pay for market data such as Bloomberg or MorningStar Direct?

What do you reccomend? Thank you for this video. It was awesome seeing the trade actually happen. Can you tell me how much you made on this trade as I cannot figure this out for sure? So you paid 10, X 10 how to hack warbucks in gun bros it which u paidfor 10 contracts?

This strategy seems stupid to does giving a baby up for adoption cost money like its just a coin toss of whether you win or lose on it.

I like trades where i think i have a lot better than coin toss odds. Patrick — on first appearances it looks like a coin toss. Actually — this is based on probabilities.

It varies from Monday to friday monday being the lowest and thursday the highest. There are fundamental and psychological reason why these gaps tend to fill as well. Also, do you trade anything other than the DOW — like leveraged indices of the DOW — seems like you could make more doing that. I am a landscape contractor with a need for winter employment. I want to stay home with my young family. Your Goldman sacs rules the world interview was awesome.

I like brave bold say it like it is people. Hi Alessio, Thanks for the video teaching, but why it must be 3 mintues chart and not a daily chart?

Can you please show me or to all who are new to this trade, bookmakers win-money bonus code video showing Day Trade strategy with short? Hi CsDiong — thanks for your question re gap strategy. You can use a daily chart to see the gap if you wish. I find that looking at a smaller time frame chart like 3min or 5min helps see the gap a lot better — especially if you are also trying to set your target at half the gap fill instead of a full gap fill.

In regards another day-trade strategy for shorting feel free to come to the free webinar this thursday details in your email. I also like using the squeeze indicator as a setup for shorting. Visit this link for details: Hi Alessio, thanks for the presentation. I like your honesty. The only thing that worries me with this trading strategy is that you appear to be going against the trend.

If the market is heading lower and it gaps lower, you suggest going long. I would have expected the market to keep heading in that downward direction. This is an Indian market blog but it seems to have sound opening hours new years eve oxford street behind it. I do not know how it work for US markets but I applied it in my trading and it worked.

Alessio, hope u make a comment on this strategy, even though it is not exactly a gap trading strategy but all gaps are included in it. I ask this as I have looked at the performance of this system over the last 2 weeks of August and the system seemed to lose on Tues 21st August, Wed 22nd, Thur 23rd and Thur 30th.

There was no bet on Tues 29th as the gap was only 6 points. This goes for all time frames, including 1min. Just noticed your comment. If you want to discuss strategy and so — email me at simon. Can you use this strategy for day trading individual stocks too?

I started day trading the stock exchange market of netherlands antilles and am looking for a go-to strategy.

This seems pretty simple to apply — great job at explaining it! But I have done a little research on Gaps and there are a few people that argue the opposite saying that majority of stock gap trading strategy time these Gaps go in the opposite direction. Are their any indicators that you use predict these or strategies you employ for when things move in the opposite direction?

Hi there, I think those sources that you mention are misleading. Not all gaps fill that is true. Line penny stock brokers, you can put the odds in your favour. For example, you can choose to only trade gaps that allow you to trade in the direction of the main trend. This means that if the major trend is UP, then only take gap downs — and if the trend is DOWN then only take gap ups.

The other thing you can do as well is avoid taking gaps on low probability days like Mondays and also options expiry fridays. So check the trend on close the day for before as that should dictate the direction of the gap.

I will watch closely for a few days before I dip my toe in the pond. Home Alessio Rastani Our Trade Service Trading Tools Blog.

Day Trading Strategy A Simple Strategy to Day Trade The Markets: Here are some chart examples: See the video above for a live example. If you cannot be bothered to watch the whole video which I recommend you shouldthen here are the main bits: Recession How To Profit From A Stock Market Crash by Selling Short Part 2.

Gold And Silver Market Update. Jose David Tena October 3, at 4: I would like to have an opportunity to get my passion into my job. And so learn from you. Alessio Rastani October 3, at 5: Thanks Helene — glad you liked it. Martin October 3, at 5: Alessio Rastani October 3, at 6: Martin — you are absolutely correct in what you say.

Dom October 3, at 6: Oh and keep em comming, great work.

Gaps | How to Identify and Trade Gaps on a Chart

Dhaval October 3, at 6: Alessio Rastani October 3, at 8: Jared October 3, at 8: Thanks for the video. Alessio Rastani October 3, at 9: Kai October 3, at 9: Alessio, there are many people now glued to your blog since you made your BBC hit.

All the best and good luck! Alessio Rastani October 3, at Kai — you make some very intelligent and good points. Maxime Calouche October 4, at Gal October 4, at 1: These might be newb questions, but maybe you could answer: Ari October 4, at 3: Chris October 4, at 4: John October 4, at 4: Andre October 4, at 6: Johan October 4, at 8: Very informative and easy to understand!

Keep up the good work! Ruslan October 4, at Reto October 4, at Ken October 4, at Thank you for demonstrating a real-time strategic futures-trading session. Nate October 4, at 1: Great Interview on BBC, and great blog Al.

stock gap trading strategy

If you had to reccomend a tradestation setup computer configuration, screens, software, etc I would apprecaite it. Carmelo October 4, at 3: Alan October 4, at 3: Artin October 5, at 1: John Jones October 5, at Alessio Rastani October 5, at 2: I would totally agree John. One of my favourites too. Matt Barker October 5, at 6: Alessio, Thank you for this video. Alessio Rastani October 5, at 7: Artin October 5, at 7: Matt Barker October 6, at 1: OK, that makes sense.

Thanks for the explanation! Patrick October 6, at Thank you for the information. Alessio Rastani October 7, at Andrew October 12, at 9: Colin October 23, at 6: Alessio Rastani October 24, at 8: Hope you find what you are looking for. David November 18, at 4: Looks like a good idea to try. Alessio Rastani November 18, at Thanks David — Let me know how it goes for you. Alessio Rastani November 27, at 2: Carel February 20, at 4: Ed May 16, at 5: James September 2, at 4: Hi, I understand that the best days of the week to use this system are Tues, Wed and Thurs.

Are there months when this system works best and months where this system is less effective? Is this just a rare blip for the system or does this occur quite often? Antoine October 2, at Alessio Rastani December 13, at Deb March 14, at 3: H April 11, at 2: Alessio Rastani April 11, at H April 15, at Thanks for the clarification.

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