Trading overnight gappers and early range breakouts

This is a discussion on Trading overnight gappers and early range breakouts within the Stocks forums, part of the Markets category; I've just started trading opening range reversal (NOT breakout) on FTSE100 index. Whereas conventional wisdom says follow the direction of ...

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Old Nov 21, 2008, 3:51pm   #9
Joined Feb 2002
I've just started trading opening range reversal (NOT breakout) on FTSE100 index. Whereas conventional wisdom says follow the direction of the break-out after the first 30-60 minutes of trading, I have found that recently 7 times out of 10 its profitable to take the oppposite direction to the first 60 minutes of the FTSE.
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Old Nov 21, 2008, 6:21pm   #10
 
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Quote:
Originally Posted by Eugene Bullard View Post
I trade Gappers, high volume and swing on belongs to FTSE, DJIA, NASDAQ and S&P 500 companies and all of them profitable. I may help you as I used to trade on US stock and UK stock.
I'm looking for help in creating a watch list before the Ftse opens of good potential trades for trading early morning gap reversals. Do you just look at high vol stocks. Are there any web sites that show potential gappers? How do you create a watch list?

Many thanks
Mac
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Old Dec 23, 2008, 10:10pm   #11
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i've been papertrading ftse100 stocks using exactly this style with great success for the last 6 months; I've developed a few rules based soley on price action that i follow mechanically and have been amazed at how reliable this is. Shame it wasn't with real money..
well I'm close to being ready to make the transition to go live, and suddenly another issue has come up: many people have suggested that US stocks are "more reliable", "more cost efficient", "more accessible", more.. .. well everybody seems to be daytrading US and not UK stocks.
As this is in the US Equities section, am I right in assuming most of you are trading US stocks? Why? I really need to be sure that I'm not missing something important here. Presumably you've all got well about $25000 in your accounts to be able to trade US stocks?
And Eugene, you used to daytrade both US AND UK stocks? So it can be done then, I suppose with someone like IB? That way, you'd get 2 early morning sessions per day, double the money! (those are the times when the real money is made).

Bryn
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Old Dec 23, 2008, 11:20pm   #12
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Hi brynno - I'm not sure of the main reason people focus on the US stocks either, though I do hear they are more volatile, which is important. But that's only good when you have a profitable system ready to go. They also get lots more trader-oriented comment and there are more mega-caps, which could keep spreads narrow. But there are exchange rate overheads.

Where does this $25k figure come from? Can you not spreadbet? - that would only require a fraction of this deposit. DMA is said to be an excellent route to the market, but I would have thought only for traders whose only or pimary income is from trading.
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Old Dec 24, 2008, 12:05am   #13
Joined Mar 2008
thanks for your reply,
sorry, I meant to say "well above 25000" of course; I'm referring to the minimum amount you are required to have in your account by US law in order to be able to day trade US stocks (more than 3 trades per week). If your balance falls below this figure you have to bring it straight back up again, or so I've been told. Apparently this doesn't apply in the UK or elsewhere.
Are US stocks really that much more volatile? At least as far as premarket gaps go, I've noticed they're very similar.
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Old Dec 24, 2008, 12:59am   #14
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brynno - never heard of this minimum deposit regulation but its not my field. Don't know if they're really that volatile but I'm told so. Seems odd to me to trade US stocks but not own or any other nationality. For some people trading NY time is just better suited to their lives anyway. I guess someone will explain.
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Old Oct 19, 2017, 8:22am   #15
 
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Pre market gappers

Quote:
Originally Posted by chartgonzo View Post
Does anyone else here focus on trading stocks that have gapped overnight? I trade the first 20min/30min range breakouts and gap fillers and reversals. From Pre-market analysis I'll have 10 to 15 stocks that have gapped up or down which have good volume, price between 20 and 80 and are movers. Most won't trend, maybe 3 or 4 do, wait for my patterns, in and out within 20 mins max. By 11.30 max am wrapped up for the day, lots of time to do more interesting things.

If there are others out there who trade the same it would be nice to compare daily stock selections and trades.
Hi, did you manage to find the pre market data for the ftse, it doesn't seem the uK has the same information scanners as the US. Could you point me in the right direction to find these charts. Thanks
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