Advanced Gap
Trading Tactics
[Link]
[Link]
= Transitions
Pre-Market
[Link]
only sure shot tips..!
Gapping Up
Opening
Gapping
Flat
Down
Market Cycle
[Link]
Where are we ?
[Link]
Transition Among Phases
[Link]
only sure shot tips..!
3
1
3
A
B
Flags
Breakdown
Patterns
Flags
[Link]
3
A
2
3
1
Breakout
Patterns
3
1
Mini Market Cycle
[Link]
Trade
Execution areas
only sure shot tips..!
[Link]
Price
Action
3
1
4
Breakout
[Link]
4
ENTRY
Higher highs and higher
lows provide evidence of
uptrend
Major Up Trend
Higher Highs
Higher Lows
C
A
Flags
[Link]
Pre-Market
[Link]
only sure shot tips..!
Gapping Up
Once
Markets
open
Opening
Gapping
Flat
Down
Continues
Continues
Continues
Higher
Higher
Higher
Sideways
Sideways
Sideways
Breakouts
Fills the Gap
Up
Fills the Gap
Up
Fills the Gap
Up
Rallies or
Pullbacks
Rallies or
Pullbacks
[Link]
[Link]
Higher
Price
Action
Opening Ranges
[Link]
only sure shot tips..!
Ideal trading
situation
Entry
[Link]
ENTRY
LONG Entry
Up trend
Higher Highs & Higher Lows
Stop loss
Bar-by-Bar Analysis
0
Pre Market Session
Extremely
Aggressive
1
Morning Session
Aggressive
Breakout/Breakdown
Prior Day Highs & Lows
Strategies
(i.e., Bull/Bear
Traps)
Higher Highs
Lower Lows
Higher Highs
Lower Lows
2
Mid-Day Session
Moderate
[Link]
3
Afternoon Session
Diligent
[Link]
Friday-Monday
only sure shot tips..! Daily Swing
Higher Highs
Lower Lows
Higher Highs
Lower Lows
[Link]
2-Bar Reversals
3-Bar Reversals
Opening Range
Breakouts
Opening Range
Breakouts
Opening Range
Breakouts
2-Bar Reversals
3-Bar Reversals
2-Bar Reversals
3-Bar Reversals
2-Bar Reversals
3-Bar Reversals
[Link]
[Link]
only sure shot tips..!
2
1
1
2
Up Trend
1
[Link]
Up Trend
breakdown
Breakout
Breakdown
Place stops above the previous swing pivot high or above
the previous entry setup
[Link]
[Link]
only sure shot tips..!
3
1
2
1
3
1
Up Trend
2
3
[Link]
Gap
Up Trend
breakdown
Gap
Breakout
Wait for confirmation of price action
Gap
Breakdown
[Link]
[Link]
only sure shot tips..!
Down Trend
breakout
Down Trend
Breakout
Breakdown
[Link]
3
1
2
Place stops under the previous swing pivot low or under the
previous entry setup
[Link]
[Link]
only sure shot tips..! Gap
Down Trend
breakout
Gap
Breakout
Gap
Breakdown
Down Trend
[Link]
3
2
1
2
3
Wait for confirmation of price action
[Link]
Transition Among
[Link]
Phases
only sure shot tips..!
T2-3
Trade #2
Trade #3
Profit
Lose
Lose
2R
1R
1R
T3-4
Transition from
Phase 2 to 3
Down Trend
Breakout
Trade # 1
Transition from
Phase 3 to 4
[Link]
Potential gaps in W
Patterns & Variations
T1-2
T4-1
Transition from
Phase 4 to 1
[Link]
Transition Among
[Link]
Phases
only sure shot tips..!
Up Trend
breakdown
T2-3
Trade # 1
Trade #2
Trade #3
Profit
Lose
Lose
2R
1R
1R
T3-4
Transition from
Phase 2 to 3
Potential gaps in
M Pattern & Variations
[Link]
Intraday
T1-2
Transition from
Phase 1 to 2
T4-1
Transition from
Phase 4 to 1
[Link]
1.
Identify gap and whether it violates the conditions for defining trending price
action
[Link]
2. only
Use OR
opening
range strategies to anticipate the setups
sure
shot tips..!
3.
For up trend breakdown, find previous Phase 2 price action
4.
For down trend breakout, find previous Phase 4 downtrend
5.
Use Fibonacci analysis on the previous move
6.
Consider breakout/breakdown as a retracement first and identify 38%-62% levels
(i.e., first preliminary targets)
[Link]
[Link]
only sure shot tips..!
[Link]
Price
Action
Ideal trading
situation
4
4
Natural pullbacks
[Link]
4
ENTRY
LONG Entry
Up trend
Higher Highs & Higher Lows
in price action
[Link]
[Link]
only sure shot tips..!
[Link]
Are the e-mini futures trending or trading sideways
(i.e., consolidating, range-bound or congestion?
[Link]
Higher
[Link]
Timeframe
only sure shot tips..!
Price
Action
Price action from prior day close
Gap Up
Flat Open
How much?
[Link]
Gap Down
Phase 2
Up trend
Higher Highs & Higher Lows
[Link]
Higher
Timeframe
Price action from prior day close
[Link] Gap Up
only sure shot tips..!
How much of a gap?
Gap
2. Bullish Rally
Flat Open
Prior Day
Close
[Link]
Gap Down
Phase
2
[Link]
Higher
Timeframe
Price action from prior day close
[Link] Gap Up
only sure shot tips..!
Prior Day
Close
2. Bullish Rally
Flat Open
Gap
[Link]
How much of a gap?
Gap Down
Phase
2
Today
Previous Day
Close(s)
[Link]
Scenario #1
only sure shot tips..!
Scenario #2
[Link]
Pre-Market
[Link]
Scenario #3
9:30 EST
Market Opens
~10:30 EST
~2:30 EST
[Link]
Price
Action
[Link]
only sure shot tips..!
Ideal trading
situation
Higher
[Link]
Opening Ranges
ENTRY
LONG Entry
Up trend
Higher Highs & Higher Lows
[Link]
2B/3B Reversal &
[Link]
crosses back into OR
Intraday
only sure shot tips..!
30 min High
30 min High
[Link]
2B/3B
Reversal
2B/3B
Reversal
[Link]
Use daily opening of price action to gauge
intraday momentum
[Link]
only sure shot tips..!
Open
Open
[Link]
2
[Link]
[Link]
only sure shot tips..!
Reference for Gaps
[Link]
[Link]
Stops
M-Pattern
Initial Stop
Fibonacci
Retracements
[Link]
(1R)
only sure shot tips..!
C
2
1
Gap
3
Flags
[Link]
Preliminary
target
Unless there is adequate reward remaining in the trade with the gap
skip the trade
[Link]
Monday
Tuesday
[Link]
only sure
Highshot tips..!
5 min High
5 min Reversal
[Link]
Pre-Market
Gap
Late Day
Breakdown
Low
Gap
Fill
[Link]
Monday
Tuesday
[Link]
only sure shot tips..!
5 min High
High
[Link]
Pre-Market
Gap & Gap Fill
Late Day Rally
