you can say what you want as long as you are happy with what you've done
i think the gap hasbeen closed on futures as high yesterday was 4508.5 and low today is 4506.5, which signalledthe small reversal to 4520........currently at 4510, if it breaks 4507 trhen next support i have is 4495/97
i think the gap hasbeen closed on futures as high yesterday was 4508.5 and low today is 4506.5, which signalledthe small reversal to 4520........currently at 4510, if it breaks 4507 trhen next support i have is 4495/97
peterpr
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bracke said:
I'm no veteran either - Lots of experience with bonds in the eighties but just 6 months active day-trading on my own account.
1. I built the position with CFD's over a 10 point rise from 4495 not expecting 4500 to be seriously breached before the usual opening swings following a smaller gap. The US rise was very sharp and just through the last 30 minutes. The FTSE futures quotes (That's NOT LIFFE - which was closed, but the CFD/SB quote providers) followed the US up to about 4510 No doubt it was the positive far East whch pushed them (and the regular futures near to 4520 by the opening this morning. With good old Harry Hindsight I started 10 point early and that was the difference between a healthy profit and an equally healthy(?) loss.
2. Trading the gap. It was obvious it was coming - just a bit (or rather a lot) larger than expected. I've done OK at it in the past and I'd even have made a small profit on this one if I'd read today a bit better and closed at the 11:15 low - but it was a big position and I was nervous. I chickened out around 9:30.
3. Agreed - but it's a damn good pointer to tomorrows opening over here
Hey Ho.
splasher
I was referring to this mornings opening gap on the daily ftse, although I trade the monthly future. My turn to confuse.
oatman
Yes, that makes sense. thank you.
dc2000
At what time do you open your ftse trades and are they daily or monthly futures.
If the dow makes one of its usual late reversals do you not get caught out?
Peterpr
Thank you for your explanations.
I cannot comment on your cfds' as I do not know enough about them.
Considering the 85 point gain on the dow what had you expected the ftse to gap to?
Regards
bracke
I was referring to this mornings opening gap on the daily ftse, although I trade the monthly future. My turn to confuse.
oatman
Yes, that makes sense. thank you.
dc2000
At what time do you open your ftse trades and are they daily or monthly futures.
If the dow makes one of its usual late reversals do you not get caught out?
Peterpr
Thank you for your explanations.
I cannot comment on your cfds' as I do not know enough about them.
Considering the 85 point gain on the dow what had you expected the ftse to gap to?
Regards
bracke
peterpr
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bracke said:
The gain was only @ 40 points when I started. The cash CFD was then 4497 (ie a potential 10 point or so gap). Even after the US close it was only about 4507 ie a potential 20 point or so gap. I'd built the whole position too quickly on an eight point (out of hours) spread and went to bed nervous. the difference between B/E and nasty loss boiled down to
1. Building the position to early/quickly.
2. The Far East having pushed the opening even higher, making me even more nervous - and
3. Consequently failing to read today's market properly.
Look where I'd be right now if I'd just hung in their this morning - and to make matters worse, I'm now long at 4496
Frankly I'd expected a gap of maybe 15 points when I set out.
Not my best day - but neither my worst (yet anyway !!!)
dc2000
So you set a limit at which to go short/long the ftse, which is heavily influenced by the dow.
If the dow then reverses in the last hour as it often does, have you set a limit at which to close the opening trade?
peterpr
A case of woe ,woe and a few more woes.
Thank you both for your explanations
Regards
bracke
So you set a limit at which to go short/long the ftse, which is heavily influenced by the dow.
If the dow then reverses in the last hour as it often does, have you set a limit at which to close the opening trade?
peterpr
A case of woe ,woe and a few more woes.
Thank you both for your explanations
Regards
bracke
peterpr
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bracke said:
As you say. But just one big Woa (as in 'hold hard hoss' ) right at the start would have been best.
I'd done nothing all day, a bit bored and just idly watching when what I saw really did seem like a good idea. I really will have to work on optimising the balance between barging in there and pussy-footing around.
Still my long is looking a bit healthier into the close. Being rather more nervous of longs than shorts just now I really would like to close it before risking another bout of US inspired roller-coasting
peterpr
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bracke said:
Well I closed at 4500 which gave me a 4 point gain and nothing left open. Small consolation for closing an overnight position four times the size for an average 5 point loss though - Ouch - specially since if I'd stuck with it ------ but there you go.
Tomorrow is another day
Good Morning All
Another scintilating start to the day I see! ( I am being sarcastic about the lack of posts )
Another gap this morning which was closed quickly, did you all trade it , no , why not?
I didn't but I have this back trouble, can't get it off the bed in the morning, so I missed it.
Pivot for to-day 4502
R1=4518
R2=4532
S1=4488
S2=4472
ftse has touched S1 and moved up but will it return?
Still holding my sept down trade at 4511.
peterpr
as you say, Tomorrow ( that is to-day ) is another day.
Regards
bracke
Another scintilating start to the day I see! ( I am being sarcastic about the lack of posts )
Another gap this morning which was closed quickly, did you all trade it , no , why not?
I didn't but I have this back trouble, can't get it off the bed in the morning, so I missed it.
Pivot for to-day 4502
R1=4518
R2=4532
S1=4488
S2=4472
ftse has touched S1 and moved up but will it return?
Still holding my sept down trade at 4511.
peterpr
as you say, Tomorrow ( that is to-day ) is another day.
Regards
bracke
alliance
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Ok Bracke u forecd me to "come out"
I too confess to being a LURKER! ......but that's mainly coz I dont understand lots of what you guys are talking about since (apart from sma's) I wouldn't know one end of a chart from another, and I am bamboozled when I look @ the thumbnails posted here. However my lurking is in an endeavour to better understand
Bracke:
When ur not suffering lazy back syndrome...do u ALWAYS trade the Gaps? Also, I would be very grateful of a comprehensive explanation of what u mean by trade the gap. My understanding thus far is that ur talking bout diff between official closing level of FTSE and the overnight +/- on futures...but am I correct? Any assistance either via board..(or if its boring 4 others) via pm would be gratefully accepted. Tnx
(btw, out 4 most of rest of day so am not being impolite if I dont reply to any responses...will read all when I return)
I too confess to being a LURKER! ......but that's mainly coz I dont understand lots of what you guys are talking about since (apart from sma's) I wouldn't know one end of a chart from another, and I am bamboozled when I look @ the thumbnails posted here. However my lurking is in an endeavour to better understand
Bracke:
When ur not suffering lazy back syndrome...do u ALWAYS trade the Gaps? Also, I would be very grateful of a comprehensive explanation of what u mean by trade the gap. My understanding thus far is that ur talking bout diff between official closing level of FTSE and the overnight +/- on futures...but am I correct? Any assistance either via board..(or if its boring 4 others) via pm would be gratefully accepted. Tnx
(btw, out 4 most of rest of day so am not being impolite if I dont reply to any responses...will read all when I return)
splasher
The run down to the weekend might shift it out of the range or not. No snoring please.
alliance
Nice when a lurker comes out
Don't be concerned about asking questions we all started at the beginning at one time or another, in my case it wasn't that long ago.
To gain a better understanding of charts a visit to your library would prove useful. If you look at the reviews of books on this site it will help you, as will reading through the various threads particularly 'First Steps'.
I usually trade the gaps depending on the type look at www.incrediblecharts.com/technical/gaps.htm for an explanation of gaps.
I hesitate to give a comprehensive explanation of gaps because I am not an expert but I will provide my understanding ( if other viewers wish to add to my comments or disagree with me please do so I will not be offended )
I trade opening gaps but gaps do occur during the trading day, whether you see them or not I suspect depends on the time frame of chart you are viewing.
This morning provides a good example. The ftse close last night at 4503 but opened this morning at a lower level ( I dont have the figure to hand ) it then went on to close the gap ie. rose from the opening price back to last night's closing price. You could have profited from this by going long at the open and closing when the gap was filled.
EDIT ftse opened at 4488 a 15 point drop from last night
I should perhaps add that the gap may be traded in the direction it gaps to - ie gaps down and continues trading down before reversing to close the gap, thus it is possible to take both trades to advantage.
I hope this helps. if it dosen't or you want further information please come back, the questions you ask are probably ones that others would like to ask but don't.
Regards
bracke
The run down to the weekend might shift it out of the range or not. No snoring please.
alliance
Nice when a lurker comes out
Don't be concerned about asking questions we all started at the beginning at one time or another, in my case it wasn't that long ago.
To gain a better understanding of charts a visit to your library would prove useful. If you look at the reviews of books on this site it will help you, as will reading through the various threads particularly 'First Steps'.
I usually trade the gaps depending on the type look at www.incrediblecharts.com/technical/gaps.htm for an explanation of gaps.
I hesitate to give a comprehensive explanation of gaps because I am not an expert but I will provide my understanding ( if other viewers wish to add to my comments or disagree with me please do so I will not be offended )
I trade opening gaps but gaps do occur during the trading day, whether you see them or not I suspect depends on the time frame of chart you are viewing.
This morning provides a good example. The ftse close last night at 4503 but opened this morning at a lower level ( I dont have the figure to hand ) it then went on to close the gap ie. rose from the opening price back to last night's closing price. You could have profited from this by going long at the open and closing when the gap was filled.
EDIT ftse opened at 4488 a 15 point drop from last night
I should perhaps add that the gap may be traded in the direction it gaps to - ie gaps down and continues trading down before reversing to close the gap, thus it is possible to take both trades to advantage.
I hope this helps. if it dosen't or you want further information please come back, the questions you ask are probably ones that others would like to ask but don't.
Regards
bracke
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