Over the Top
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Does anyone else use this style of trading?
I work a number of markets and strats, but one I find particularly easy (and fun!) to employ is the pre-market gap.
Run your scanner to pick up the highest percentage (not points) gappers pre-market. Shortlist them.
Wait for the market to open. Wait 30 mins. What's the general direction of the index and market leaders? If it's flat, go home.
Select the Gap UPs/DOWNs depending on general market condition.
Say it's DOWNs.
Wait for your selected Gap DOWN stocks to make a new LOW (this is after the 30 mins open) and SHORT it/them. Exit on flattening of 9, 12 or 15 EMA - play with whichever one feels right - I use a 9EMA.
With Gap UPs, obviously you wait for a new HIGH before going LONG. Same EMA exit.
HTH
I work a number of markets and strats, but one I find particularly easy (and fun!) to employ is the pre-market gap.
Run your scanner to pick up the highest percentage (not points) gappers pre-market. Shortlist them.
Wait for the market to open. Wait 30 mins. What's the general direction of the index and market leaders? If it's flat, go home.
Select the Gap UPs/DOWNs depending on general market condition.
Say it's DOWNs.
Wait for your selected Gap DOWN stocks to make a new LOW (this is after the 30 mins open) and SHORT it/them. Exit on flattening of 9, 12 or 15 EMA - play with whichever one feels right - I use a 9EMA.
With Gap UPs, obviously you wait for a new HIGH before going LONG. Same EMA exit.
HTH
