3SOF

Lets see if the market will give us a gap:

"09:00 am : S&P futures vs fair value: +4.1. Nasdaq futures vs fair value: +5.5.  Futures indications are off their best levels but the stage remains set for the market to open on an upbeat note as investors embrace tame inflation data and continue to digest strong earnings."

Great  .. my favorite gap to fade.. a gap up after a strong move down.  We are also selling some positions in the portfolio.. the gap up is great to sell into. 

Here are the victims gap list:

Hmm RSAS might be a nice one to short if it prints 18.54..

WIRE short trigger 38.24

Hi G-

Question you say prints 18.54.  Is that on the way down?  It's higher than that now (18.62)

Quote from: Adam on April 18, 2006, 09:59:48 AM
Hi G-

Question you say prints 18.54.  Is that on the way down?  It's higher than that now (18.62)

Right.. it means it must print that number for us to go short.. remember we are using a 5-min chart.

Now nothing has triggered.. and I'm calling them all off for now.. the market gapped up and is heading higher for now.

That answer might not be clear enough.. to play the gap fade we need a little 5-min breakout to occur.  This means shorting on the way down and goig long on the way up.  Hope that clears it up. 

  Hey Elite, I am really interested in the "fade the gap" concept. I understand you are using the 5 min chart. What criteria are you using to identify the good fade the gap plays from the list. Are you looking at volume with volatility. How do you know what a good trigger price is once you pick. I have been reading these since you started and i guess i missed how you chose the right one.
thanks

Quote from: patriotmp on April 18, 2006, 05:37:08 PM

  Hey Elite, I am really interested in the "fade the gap" concept. I understand you are using the 5 min chart. What criteria are you using to identify the good fade the gap plays from the list. Are you looking at volume with volatility. How do you know what a good trigger price is once you pick. I have been reading these since you started and i guess i missed how you chose the right one.
thanks

Hey patriotmp   

The material for finding the good gaps is located here:
http://www.3stocksonfire.org/trading/index.php?topic=5148.0

Since we have to be quick about it.. I am calling out the triggers as I see them.  For now we will stick to one stock at a time.  Then hopefully we can expand.

Let me know if that link up there helps.. maybe I can do a chat session specifically about fading the gap...hmm