Gap trading

[bottomdollar]

Hey All,
Have got "Trade your way to Financial Freedom" by Van Tharp today and there is a bit right at the beginning:

First, you take yesterday's price range. If there' a gap between yesterday and the day before, then add the gap into the range -- that's called the true range. Now take 40% of yesterday's true range and bracket today's range by that amount. The upper value is your buy signal and the lower value is your sell signal. If either value is hit then get into the market and you'll have an 80% chance of making money tomorrow.

Does anyone predominantly trade gaps and make a sh*t loada wonga... what other gap trading strategies do others use??

Cheers all

 

[Mr. Charts]

Hey topdollar ;-)
In view of your 4pm comment on http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=5223
I'm sure it's ok if I say that I will show you how I trade gaps on our day. My method works very consistently and profitably and is very logical being based on trader sentiment and actual price action - and is much simpler than the method you quote.
Best wishes,
R

 

[bottomdollar]

Mr Charts!!
Great stuff, I'm a true believer in KISS (Keep It Simple Stupid!!)
Look forward to it.. will drop you an email at some point.. just remembered I said I would as I need to send you directions!
Ta

 

[Naz]

I've been a gap player on the open for years.
Those that have done this style of trading know how strong the moves can be,i let students play previous gaps on the computer so that they can hone their skills with the rules that i have given them.This takes them from knowing the theory to putting it into practice and therefore believing that it will work.

Couple this to trading with a level 2 direct access screen and you can trade one hour a day for excellent returns.

Excellent returns eh?

Truthfully if i'm quiet during August anyone can come and see me for a quick meeting outside US market hours, i will not give my new rules but hopefully prove that it can be done.
My e mail is [email protected] if you wish to make that appointment.I'm based in London near Heathrow.