Trading the Gaps

I suspect the index is catching up with the good news from China over the weekend.

It's one of the reasons I don't do gaps on Monday's - too much news to be assimilated into price.
 
1pt bagged. Little one but every little helps. Good conditions today with price drifting around in the tight channel that has developed over the week.

Also helped that it closed close to the high last night and good news coming out at 1.15pm today.
 
Good job, Rob! I am actually not having a good start of the year. I took no trade yesterday (no gap), and am at the wrong side of the position I just took, 31.50 long right after open. Still holding to take my punishment at stop.
 
ilir - I had an absolutely disastrous day yesterday including:

- not taking a profit at a target that had good confirmation associated with it
- not fading that trade and watching previous trade run back to it's SL
- being chewed up and spat out as it tested highs yesterday

i took 4pts on a reversal from last nights top earlier today and this 1pt on the gap - this is the best days trading I've had this year my friend!

yesterday was like I'd forgotten everything I've learnt and was gambling, not trading.
 
Just closed trade at 33.25, for 1.75pts. It was not fun being me this morning. Missed great moves as I was tardy at 'work' and I was trading mad. Chased a trade, and it went south on me and stayed there for a long while. And, ended up taking a profit that is not my usual one. But, it is the game, and we are just players.

Hang in there, Rob! An off day does not make one a bad trader, it's just a regulator I think.
 
Looks like you might do o.k. after all!! It will be interesting to see what it does from here. I made about 2 pts on gap fill this a.m.
 
I'm long from the second test of today's low. It looks like it is trending on the 1d now. I'll see how that one runs now for the next few days. Worst that can happen is that it scratches.

FOMC tonight and a whole shedload of news on Friday including NFP. Maybe getting positioned for another run or alternatively dumped from a great height
 
Filled at open at 29.75
Was late again this morning, and missed a fatter gap. First target is 31.75, second 33
 
Exited second position at 32. Why? Because I am a rookie, had a bad first week and needed to lock in profits. Bad mistake, but will live. Out, flogging myself for now.
 
I'm still in - waiting for the gap to close, patiently, like a good gap trading monkey.
 
Robster - My utmost respect.

I am humbled by the resilient remnants of my rookie habits. More worryingly, I have developed a tardiness problem. Whereas I used to be by my screen at 7am EST on most days, I have yet to make 8:30am for this new year. Any Trading-Anonymous groups I can join in my area? :)
 
Stopped out today. First one in 7 gaps. Just the way it goes.

You don't need a traders-anonymous - you just need to get you ass out of bed and do some prep. ;)
 
When I was watching the ensuing volatility, I knew I had a swing trade in play at the moment which has a stop set just below 25 which has been tested 4 times in the last few days. I kind of knew support would kick in at around 26-27 again but I felt this was too far away from my entry to justify the reward of 1.5 pts (I was in at 31.25). So 4pts risked for 1.5pt reward?

I see the gap has filled. :rolleyes:
 
As gaps go, this was a 'Somalia' gap. If I had gotten in 20 minutes earlier, my stop loss would have taken the punishment of the price action on today's gap, and full targets would have been achieved with no problem. I got perturbed because I was late, and, judging by what transpired, my stop (which is too conservative for a straight-out gap play) would have been triggered if not careful with the manual adjustment after first half-position exited.
 
I don't really classify today's as a Somalia as it filled within the first hour. The problem was a whole set of sell limit orders around 32 which filled the market.
 
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