Gaps Markets closed, what the next move
Will the debt of 100 points in the markets close this week, or after French elections?
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| gaps markets |
it took some time but the gaps filled :
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| Dax 30 price gap |
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| CAC 40 price gap |
let’s consider statistics for a moment. We believe that a hit rate of 70 percent is the ideal goal when putting together a trading system. This means that 70%, or 7 out of 10, of our trades, are successful. This is just where you start. The essential objective of trading is continuing to increase your hit rate, strategically stacking the odds in your favor. In order to increase your hit rate, you need to be able to filter out the losing trades. Gap trading is what allows you to achieve a consistently solid streak of winning trades.
Gap trades are given the name for a reason. They tend to fill regularly. Therefore, this gives them a high win rate. Besides the obvious reason, this is beneficial because, again, it keeps your confidence levels up, which will positively affect your approach to the job. The more losses you have to take, when you’re trying to break into the market or ride some current trend, the more it can negatively impact that confidence.
There are lots of opportunities available within the thrum of gap trades, which is, of course, another benefit of this system. The gaps that you have to choose from include closing gaps, extreme overnight POM gaps, POM gaps, and intraday gaps.
New position must only be open in the current direction of the prevailing trend. Price must then jump in value forming a gap above resistance or below support before returning to its initial resistance level. Such a process would fill the gap. The following diagram shows such a trading setup.
The primary rule to trading gaps is fundamental. Whichever direction in which the gap is expanding, you instigate a trade in the opposite direction.
This review does not including any document and / or file attached to it as an advice or recommendation to buy / sell securities and / or other advice
