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Daytraders: Fading the Gap

Started by eliteG, June 10, 2005, 09:15:41 AM

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eliteG

Thank you jayrbee.  :)

I know some of the morning gaps via a filter in Realtick but I also find them by searching the web for news and I keep a list of very liquid, volatile stocks that are safe for a gap fade.

I generally look for 50 cents of gap or better to trade.  The gap fade is only entered in the 9:30am -10am time frame based on the gap on opening.  It is also a useful thing to sell by 10am sometimes as reversals generally happen at this time. 

I will try to post ones I am watching eventually, but for now it will only be studies.  I hope they shed some light.

8)

Mr.O

Hi Guys, The only place that I am able to find gaps up and down before the market opens is from Breifing.com's in play news wire. It's delayed on yahoo finance but my online broker streams it real time.

eliteG

Not gonna be able to post any studies today...tired. 

MR. O - I will check for other sources of gap ups.


eliteG

Looking at CRXL, NCRX, SGMS, IMCL, GSOL as possible gap fades

CRXL just activated, short CRXL

eliteG

stop is 24.13 on CRXL(high of inside candle)

eliteG


eliteG

thats what its all about




eliteG

allright I feel like fading gaps today..lets see if anything pops up.  If you feel like something is gapping up or down falsely let me know  ;)

eliteG

this is my possible list:

ANTP  CBST  PAYX  CRDN  BRCM  XMSR  YHOO

eliteG

COGN entered the gap, CBST PAYX XMSR off watch

eliteG

YHOO faded, COGN faded..no one else triggered...nice  8)  ANTP is right there but out of my time zone

mix_master_mike

Honestly, probably my favorite technique for daytrading. This is one of the few that I use if I'm going to hold a security for a very short period of time. I didn't have a very good day, but I did profit a bit... Also checkout how MERQ did the anti-fade.

BSX:
Short @ 28.65
Cover @ 28.47 (I had to go get lunch :( )

Mike
www.vafrous.com

eliteG

hey mix-master-mike  ;)  Nice work.(applaud)  I'll try to find some gaps to fade tomorrow.  If you want to try posting any gap fade picks here that would be great.  This could end up being a great resource for those interested in learning or playing the gap fades.   >:D

golfqtee

A couple days ago, I bought BRAVO at .72 when it fell from the sky.  Flipped it up at .90.  made some money.  It does work!

mix_master_mike

EliteG,

thanks for the compliments :) And congrats on your success, you seem to be a great resource for the board. I noticed that like many others, I'm following in your footsteps - I'm 19 and a CS major at UofM - but instead of doing trades before class I do some during :)

Unfortunately I work full time this summer, and I get into work after a long drive right at the market open, but I'll try to post what I'm playing as early as possible.

Keep up the good work, sir.
Mike
www.vafrous.com