3SOF

thx mix, glad the list helps

kick it 

Both GM and F are making pretty, relatively textbook and narrow fade-ups.

gappers 

going for nse today,,, no time to post chart. let us see what happens here 

looking to fade the gap here on CARS short @ 36.12 

good morning

ADBE is looking good for a short here too..target 26 

ADBE went down but was stubborn and didnt givemany points

..and geez it took forever but CARS finally closed its gap.

One more down  next

wow! this is a great resource,
thanks everyone for your input.
i have a question which i asked on the bcon board but got no answer so hopefully soneone here like elite g or mix master or some of you other traders may be able to help me with.
i noticed both bcon and vphm gap up in the morning but in the pre market ,say, for bcon as i remember it there was about 250k sales rather than buys so when the market opened it closed the gap . is this something to look for in a gap up in the pre market when there is a lot of selling at a higher price than the previous days close that the gap will probably close. vphm was the same.
thanks love to here your input,
maxi

Quote from: atl_trader on July 13, 2005, 02:14:58 PM

Quote from: eliteG on July 13, 2005, 12:33:55 AM
Hey atl_trader  (I'm in atlanta too)

Thx for the links.  Can you tell me how you use these trade ideas alerts?  Just for study or do you get realtime gap fade alerts?

I checked the links and it seems that a lot of these don't have the volume or the neccessary gap distance is that something you can set for it to look for.

coo 

That's great! I keep things moving in Midtown on Peachtree.

That's how I use the system ... I pick those alerts and then I can make all kinds of filter requirements based on volume (daily, current relative volume, etc.) or volatility or base on price (position in daily range, year range, MAs, etc.)

I dont think you'll see all the symbols in this alertwindow without signing up for the trial, but this is what I am looking at this morning:
http://www.trade-ideas.com/View.php?O=18300000000_3d_0&QGUR=.25&QGDR=.25&QFGDR=75&QFGUR=75&MaxPrice=66&MaxSpread=10&MinVol=300000&MinRV=1.4&WN=Gap+Alerts+on+Volume

I've added another strategy that is like a bloodhound in the way it finds whats in a strong trend - these candidates gap up from yesterday's close by at least $0.05 or more but no fading these:
http://www.trade-ideas.com/View.php?O=2a20000000000000000000000_3d_0&QRUI=2.5&QSBOC=2&QFDP=2&MinPrice=3&MaxSpread=10&MinRV=1&MinFCD=.05&MaxLR130=0.35&MinConDays=2&MinRCon=55&WN=Strong+Trend+Candidates

with out the free trial i think you'll see every 5 alert or so.  But when I ran this on Friday - I feasted on GMA and ENH

here is a discussion by quite an experienced trader I found from one of the Yahoo MBs, discussing trading gaps on the CBOT Mini Dow market - makes for some interesting reading, on both mentality and philosophy of trading gaps, and also with plent of detailed examples.

Ineresting reading!

http://www.cbot.com/cbot/pub/cont_detail/0,3206,1070+14719,00.html

I thought it might be interesting to bring this thread back to life as JMoney just contacted me about how useful this method seems.  I might start posting these plays again but I only suggest playing if you have an account you can use margin with to short(over 25k usually).  No matter if you "fade the gap" I think it is important to know of this method and that many traders do use it.

The following is some guidelines I put down on page 4 of this thread.  Check out the examples, especially the real-time ones. 

Quote from: eliteG on July 11, 2005, 11:07:25 AM
Hey agatto2, these gap fades are very rule specific plays which make them, in my opinion, extremly safe and almost easy.  I'll break it down for you:

1.  Find gapping stocks
          -I like to find stocks that have gapped up and fade that gap, or short them but you can do the opposite with stocks that have gapped down and fade them long.

2.  I look for the gap to go outside of the BB(Bollinger Bands), $10-$40 price range, at least 200,000 volume at that time of day which is almost right at open.  This gives you a fast exit(liquidity)

3.  Some people use the break of the first 5-min bar to go short or you can use an inside candle that forms(i like this way a lot)

4.  trigger is immidiate break of that 5min bar low, or inside bar low

5.  stop is very tight, high of day at that point or top of inside candle.

6.  target is the close of the gap but you dont need to wait for all of it since it can be a huge gain anyway.  take 1/2 profits if you feel support coming on.

7. these play usually dont last more than 1.5 hours and I have had plays that only last a few min.

8.  this is an awesome tool to every traders arsenal 

check out the examples!

I'm going to start listing some examples here of fading the gap.

Also wanted to add that it is usually best to go the way the market goes.  If it gaps up look to fade short.  Today was a gap down so I was looking to fade long.  The market itself fades the gap 

another