Strategies for Large Gaps 8+ in direction of 15 minute Close Bar.
A slow range drifter after a high volitility day. (see more)
Once the potential is Identified for a trend drifter day by meeting the criteria of:
-Gap up in same direction as 15 minute close.
-Gap more than 8+ pts
-Slow Open and soft test of Gap area/15 minute Open bar low.
Market bias Calls for Range day (extra)
If you choose to trade on these days use can choose to use tight target or ATM Orders to protect small gains. Or Hold till close. Trend days has a 80% chance of closing on the highs of the day. If we get a great early entry, then trailing for the day may be a good option.
WHAT THEY LOOK LIKE:
On Extra Large Gap Days (around 8+ point). Look for Tighter Trading ranges, some tend to drift away from the gap area for the day.
Another Drifter after Large Gap
HOW TO TRADE IT
Ideally we want to look for a test of the gap area and fade the lows,
look for 7 bar clue as to trend continuation potential.
As the move progresses...
Look at the $TICK to determine Trend and range potential and adjust targets accordingly. The $TICK trend line will stay above the 0 line in an uptrend.
