Insight on Fading Gap Downs Please.

[mfdoom]

Gap downs are low risk,simple, and probable, yet I could use some insight and tips for trading them.

Here is my method so far: I run a scan at 9:45 AM for gap downs at 4% or more in US equities. If the 6 month price chart shows somewhat of an uptrend, and the candlestick patterns or phycology shows positive sentiment, I will buy. I am also aware of volume and look for a continuation in the average rage after 9:50 AM.

If anyone has tips such as which timeframe to use, reversal tendencies, what they personally do, or even a better method/system, please respond.

 

[robertofx]

Gap downs are low risk,simple, and probable, yet I could use some insight and tips for trading them.

Here is my method so far: I run a scan at 9:45 AM for gap downs at 4% or more in US equities. If the 6 month price chart shows somewhat of an uptrend, and the candlestick patterns or phycology shows positive sentiment, I will buy. I am also aware of volume and look for a continuation in the average rage after 9:50 AM.

If anyone has tips such as which timeframe to use, reversal tendencies, what they personally do, or even a better method/system, please respond.

How is your strategy ? Achieved good results with it ?

 

[mfdoom]

How is your strategy ? Achieved good results with it ?

I've tested it maybe four days and I have taken a small loss. Loss because I cannot run a scan earlier than 9:45AM, so by that time the stocks are already close to filling the gap at 50% and usually bounce off that range. I have not found a stock that continuously or steadily rose throughout the day in about a week, which is what I am looking to trade. For example, look at Sprint (S) on july 12th, 2013