4 Advanced Gap Trading Tactics
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View 4 Advanced Gap Trading Tactics as PDF for free.
More details
- Words: 962
- Pages: 27
Loading documents preview...
Advanced Gap Trading Tactics
IntradayMoney.in
www.intradaymoney.in
= Transitions
Pre-Market
www.dailyniftytips.in only sure shot tips..!
Gapping Up
Opening
Gapping
Flat
Down
Market Cycle
IntradayMoney.in Where are we …?
www.intradaymoney.in Transition Among Phases
www.dailyniftytips.in only sure shot tips..!
1
2
2
C
C
2
3 1
3 A
B Flags
Breakdown Patterns
Flags
1
IntradayMoney.in 3
B
A 2
3 1
2
Breakout Patterns
3 1
4
Mini Market Cycle www.dailyniftytips.in Trade Execution areas only sure shot tips..!
4
www.intradaymoney.in Price Action
2
4
3 1
4 Breakout
4
IntradayMoney.in
4 ENTRY
Higher highs and higher lows provide evidence of uptrend
B
Major Up Trend •Higher Highs • Higher Lows
3
1
2
C A Flags
www.intradaymoney.in
Pre-Market www.dailyniftytips.in only sure shot tips..!
Gapping Up
Once Markets open
Opening
Gapping
Flat
Down
Continues
Continues
Continues
Higher
Higher
Higher
Sideways
Sideways
Sideways
Breakouts
Fills the Gap Up
Fills the Gap Up
Fills the Gap Up
Rallies or Pullbacks
Rallies or Pullbacks
IntradayMoney.in
www.intradaymoney.in Higher Price Action
Opening Ranges www.dailyniftytips.in only sure shot tips..!
Ideal trading situation Entry
IntradayMoney.in ENTRY
LONG Entry •Up trend •Higher Highs & Higher Lows
Stop loss
Bar-by-Bar Analysis
0 Pre Market Session Extremely Aggressive
1 Morning Session Aggressive
Breakout/Breakdown Prior Day Highs & Lows
Strategies (i.e., Bull/Bear Traps)
Higher Highs Lower Lows
Higher Highs Lower Lows
2 Mid-Day Session Moderate
www.intradaymoney.in 3 Afternoon Session Diligent
www.dailyniftytips.in Friday-Monday only sure shot tips..! Daily Swing
Higher Highs Lower Lows
Higher Highs Lower Lows
IntradayMoney.in
2-Bar Reversals 3-Bar Reversals …
Opening Range Breakouts
Opening Range Breakouts
Opening Range Breakouts
2-Bar Reversals 3-Bar Reversals …
2-Bar Reversals 3-Bar Reversals …
2-Bar Reversals 3-Bar Reversals …
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
2
2 1
3
3
1
1 2
Up Trend 1
3
IntradayMoney.in
Up Trend breakdown
2
Breakout
3
Breakdown
Place stops above the previous swing pivot high or above the previous entry setup
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
3 1
2 1
2
3 1
Up Trend
2 3
1
IntradayMoney.in
Gap Up Trend breakdown
2
Gap Breakout
Wait for confirmation of price action
3
Gap Breakdown
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Down Trend breakout Down Trend
Breakout
1
Breakdown
2
1
3
IntradayMoney.in 3
2
2
3
1
1 2
3
Place stops under the previous swing pivot low or under the previous entry setup
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..! Gap Down Trend breakout
1
Gap Breakout
Gap Breakdown
2
3
Down Trend
IntradayMoney.in 3
3
1
1
2
2 1
2 3
Wait for confirmation of price action
www.intradaymoney.in
Transition Among www.dailyniftytips.in Phases
only sure shot tips..!
T2-3
Trade #2
Trade #3
Profit
Lose
Lose
2R
1R
1R
T3-4
Transition from Phase 2 to 3
Down Trend Breakout
Trade # 1
Transition from Phase 3 to 4
IntradayMoney.in Potential gaps in W Patterns & Variations
T1-2
T4-1 Transition from Phase 4 to 1
www.intradaymoney.in Transition Among www.dailyniftytips.in Phases
only sure shot tips..!
Up Trend breakdown T2-3
Trade # 1
Trade #2
Trade #3
Profit
Lose
Lose
2R
1R
1R
T3-4
Transition from Phase 2 to 3
Potential gaps in M Pattern & Variations
IntradayMoney.in Intraday
T1-2 Transition from Phase 1 to 2
T4-1 Transition from Phase 4 to 1
www.intradaymoney.in 1.
Identify “gap” and whether it violates the conditions for defining trending price
action www.dailyniftytips.in 2. only Use OR – “opening range” strategies to anticipate the setups sure shot tips..! 3.
For up trend breakdown, find previous Phase 2 price action
4.
For down trend breakout, find previous Phase 4 downtrend
5.
Use Fibonacci analysis on the “previous” move
6.
Consider breakout/breakdown as a retracement first and identify 38%-62% levels (i.e., first preliminary targets)
IntradayMoney.in
4
4
www.dailyniftytips.in only sure shot tips..!
www.intradaymoney.in Price Action
4
Ideal trading situation
4 4
Natural pullbacks
IntradayMoney.in
4 ENTRY
LONG Entry •Up trend •Higher Highs & Higher Lows
in price action
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
IntradayMoney.in Are the e-mini futures trending or trading sideways (i.e., consolidating, range-bound or congestion?
www.intradaymoney.in Higher www.dailyniftytips.in Timeframe only sure shot tips..!
Price Action
Price action from prior day close Gap Up
Flat Open
How much?
IntradayMoney.in Gap Down
Phase 2 •Up trend •Higher Highs & Higher Lows
www.intradaymoney.in Higher Timeframe
Price action from prior day close
www.dailyniftytips.in Gap Up only sure shot tips..! How much of a gap?
Gap
2. Bullish Rally Flat Open
Prior Day Close
IntradayMoney.in
Gap Down
Phase 2
www.intradaymoney.in Higher Timeframe
Price action from prior day close
www.dailyniftytips.in Gap Up only sure shot tips..! Prior Day Close
2. Bullish Rally
Flat Open
Gap
IntradayMoney.in How much of a gap?
Gap Down
Phase 2
Today
Previous Day Close(s)
1
www.dailyniftytips.in Scenario #1 only sure shot tips..!
Scenario #2
www.intradaymoney.in
2
3
Pre-Market
IntradayMoney.in
Scenario #3 9:30 EST Market Opens
~10:30 EST
~2:30 EST
www.intradaymoney.in Price Action
www.dailyniftytips.in only sure shot tips..!
Ideal trading situation Higher
IntradayMoney.in Opening Ranges
ENTRY
LONG Entry •Up trend •Higher Highs & Higher Lows
www.intradaymoney.in
2B/3B Reversal & www.dailyniftytips.in crosses back into OR
Intraday
only sure shot tips..!
30 min High
30 min High
IntradayMoney.in 2B/3B Reversal
2B/3B Reversal
www.intradaymoney.in
Use daily opening of price action to gauge intraday momentum www.dailyniftytips.in only sure shot tips..! Open
1
Open
IntradayMoney.in 2
2
1
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Reference for Gaps
IntradayMoney.in
www.intradaymoney.in Stops M-Pattern
Initial Stop
Fibonacci Retracements www.dailyniftytips.in
(1R)
A
only sure shot tips..!
C 2 1
Gap 3
B
Flags
IntradayMoney.in Preliminary target
Unless there is adequate reward remaining in the trade with the gap – skip the trade
www.intradaymoney.in
Monday
Tuesday
www.dailyniftytips.in only sure Highshot tips..! 5 min High 5 min Reversal
IntradayMoney.in
Pre-Market Gap
Late Day Breakdown
Low
Gap Fill
www.intradaymoney.in
Monday
Tuesday
www.dailyniftytips.in only sure shot tips..! 5 min High
High
IntradayMoney.in
Pre-Market
Gap & Gap Fill Late Day Rally
IntradayMoney.in
www.intradaymoney.in
= Transitions
Pre-Market
www.dailyniftytips.in only sure shot tips..!
Gapping Up
Opening
Gapping
Flat
Down
Market Cycle
IntradayMoney.in Where are we …?
www.intradaymoney.in Transition Among Phases
www.dailyniftytips.in only sure shot tips..!
1
2
2
C
C
2
3 1
3 A
B Flags
Breakdown Patterns
Flags
1
IntradayMoney.in 3
B
A 2
3 1
2
Breakout Patterns
3 1
4
Mini Market Cycle www.dailyniftytips.in Trade Execution areas only sure shot tips..!
4
www.intradaymoney.in Price Action
2
4
3 1
4 Breakout
4
IntradayMoney.in
4 ENTRY
Higher highs and higher lows provide evidence of uptrend
B
Major Up Trend •Higher Highs • Higher Lows
3
1
2
C A Flags
www.intradaymoney.in
Pre-Market www.dailyniftytips.in only sure shot tips..!
Gapping Up
Once Markets open
Opening
Gapping
Flat
Down
Continues
Continues
Continues
Higher
Higher
Higher
Sideways
Sideways
Sideways
Breakouts
Fills the Gap Up
Fills the Gap Up
Fills the Gap Up
Rallies or Pullbacks
Rallies or Pullbacks
IntradayMoney.in
www.intradaymoney.in Higher Price Action
Opening Ranges www.dailyniftytips.in only sure shot tips..!
Ideal trading situation Entry
IntradayMoney.in ENTRY
LONG Entry •Up trend •Higher Highs & Higher Lows
Stop loss
Bar-by-Bar Analysis
0 Pre Market Session Extremely Aggressive
1 Morning Session Aggressive
Breakout/Breakdown Prior Day Highs & Lows
Strategies (i.e., Bull/Bear Traps)
Higher Highs Lower Lows
Higher Highs Lower Lows
2 Mid-Day Session Moderate
www.intradaymoney.in 3 Afternoon Session Diligent
www.dailyniftytips.in Friday-Monday only sure shot tips..! Daily Swing
Higher Highs Lower Lows
Higher Highs Lower Lows
IntradayMoney.in
2-Bar Reversals 3-Bar Reversals …
Opening Range Breakouts
Opening Range Breakouts
Opening Range Breakouts
2-Bar Reversals 3-Bar Reversals …
2-Bar Reversals 3-Bar Reversals …
2-Bar Reversals 3-Bar Reversals …
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
2
2 1
3
3
1
1 2
Up Trend 1
3
IntradayMoney.in
Up Trend breakdown
2
Breakout
3
Breakdown
Place stops above the previous swing pivot high or above the previous entry setup
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
3 1
2 1
2
3 1
Up Trend
2 3
1
IntradayMoney.in
Gap Up Trend breakdown
2
Gap Breakout
Wait for confirmation of price action
3
Gap Breakdown
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Down Trend breakout Down Trend
Breakout
1
Breakdown
2
1
3
IntradayMoney.in 3
2
2
3
1
1 2
3
Place stops under the previous swing pivot low or under the previous entry setup
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..! Gap Down Trend breakout
1
Gap Breakout
Gap Breakdown
2
3
Down Trend
IntradayMoney.in 3
3
1
1
2
2 1
2 3
Wait for confirmation of price action
www.intradaymoney.in
Transition Among www.dailyniftytips.in Phases
only sure shot tips..!
T2-3
Trade #2
Trade #3
Profit
Lose
Lose
2R
1R
1R
T3-4
Transition from Phase 2 to 3
Down Trend Breakout
Trade # 1
Transition from Phase 3 to 4
IntradayMoney.in Potential gaps in W Patterns & Variations
T1-2
T4-1 Transition from Phase 4 to 1
www.intradaymoney.in Transition Among www.dailyniftytips.in Phases
only sure shot tips..!
Up Trend breakdown T2-3
Trade # 1
Trade #2
Trade #3
Profit
Lose
Lose
2R
1R
1R
T3-4
Transition from Phase 2 to 3
Potential gaps in M Pattern & Variations
IntradayMoney.in Intraday
T1-2 Transition from Phase 1 to 2
T4-1 Transition from Phase 4 to 1
www.intradaymoney.in 1.
Identify “gap” and whether it violates the conditions for defining trending price
action www.dailyniftytips.in 2. only Use OR – “opening range” strategies to anticipate the setups sure shot tips..! 3.
For up trend breakdown, find previous Phase 2 price action
4.
For down trend breakout, find previous Phase 4 downtrend
5.
Use Fibonacci analysis on the “previous” move
6.
Consider breakout/breakdown as a retracement first and identify 38%-62% levels (i.e., first preliminary targets)
IntradayMoney.in
4
4
www.dailyniftytips.in only sure shot tips..!
www.intradaymoney.in Price Action
4
Ideal trading situation
4 4
Natural pullbacks
IntradayMoney.in
4 ENTRY
LONG Entry •Up trend •Higher Highs & Higher Lows
in price action
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
IntradayMoney.in Are the e-mini futures trending or trading sideways (i.e., consolidating, range-bound or congestion?
www.intradaymoney.in Higher www.dailyniftytips.in Timeframe only sure shot tips..!
Price Action
Price action from prior day close Gap Up
Flat Open
How much?
IntradayMoney.in Gap Down
Phase 2 •Up trend •Higher Highs & Higher Lows
www.intradaymoney.in Higher Timeframe
Price action from prior day close
www.dailyniftytips.in Gap Up only sure shot tips..! How much of a gap?
Gap
2. Bullish Rally Flat Open
Prior Day Close
IntradayMoney.in
Gap Down
Phase 2
www.intradaymoney.in Higher Timeframe
Price action from prior day close
www.dailyniftytips.in Gap Up only sure shot tips..! Prior Day Close
2. Bullish Rally
Flat Open
Gap
IntradayMoney.in How much of a gap?
Gap Down
Phase 2
Today
Previous Day Close(s)
1
www.dailyniftytips.in Scenario #1 only sure shot tips..!
Scenario #2
www.intradaymoney.in
2
3
Pre-Market
IntradayMoney.in
Scenario #3 9:30 EST Market Opens
~10:30 EST
~2:30 EST
www.intradaymoney.in Price Action
www.dailyniftytips.in only sure shot tips..!
Ideal trading situation Higher
IntradayMoney.in Opening Ranges
ENTRY
LONG Entry •Up trend •Higher Highs & Higher Lows
www.intradaymoney.in
2B/3B Reversal & www.dailyniftytips.in crosses back into OR
Intraday
only sure shot tips..!
30 min High
30 min High
IntradayMoney.in 2B/3B Reversal
2B/3B Reversal
www.intradaymoney.in
Use daily opening of price action to gauge intraday momentum www.dailyniftytips.in only sure shot tips..! Open
1
Open
IntradayMoney.in 2
2
1
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Reference for Gaps
IntradayMoney.in
www.intradaymoney.in Stops M-Pattern
Initial Stop
Fibonacci Retracements www.dailyniftytips.in
(1R)
A
only sure shot tips..!
C 2 1
Gap 3
B
Flags
IntradayMoney.in Preliminary target
Unless there is adequate reward remaining in the trade with the gap – skip the trade
www.intradaymoney.in
Monday
Tuesday
www.dailyniftytips.in only sure Highshot tips..! 5 min High 5 min Reversal
IntradayMoney.in
Pre-Market Gap
Late Day Breakdown
Low
Gap Fill
www.intradaymoney.in
Monday
Tuesday
www.dailyniftytips.in only sure shot tips..! 5 min High
High
IntradayMoney.in
Pre-Market
Gap & Gap Fill Late Day Rally
Related Documents
4 Advanced Gap Trading Tactics
January 2021 0
Advanced Scalp Trading Tactics: Intradaymoney.in
January 2021 1
Swing Trading Tactics
February 2021 4
Options Trading Advanced Module
January 2021 1
9 Advanced Trading Psycology
January 2021 0More Documents from "chandra369"
1 Advanced Scalp Trading Tactics.pdf
January 2021 0
5 Advanced Counter Trend Trading Techniques
January 2021 0
9 Advanced Trading Psycology
January 2021 0
5 Professional Trading Pattern Techniques
January 2021 0
12 Real Trade Patterns Analysis.pdf
January 2021 0