Hey
@Load
It is difficult to answer your question exactly - Gaps are tricky - and they usually catch a lot of people out -
I would say that you have to watch first to see what will happen - there are a range of reasons a stock will gap up and another range of reasons where the SP will go after the initial gap up -
Being a Dter and not always knowing the comprehensive fundamentals is a bit of a problem -that is why it is so easy to suck in the crowd with a bit of BS
Charts are the best tool to determine what is likely to happen- it is all about price breaking higher after the initial high - of the first say half hour of trade - in this instance I am usually watching with a 5 min TF and looking at what the volume is doing -
But hey better to read as much as you can from different sources and try to understand first - no need to be an early morning hero if your not completely across all the variables - I have thrown a lot of money into the gap vortex
but I guess that bought me the education - and it is probably going to always be a day to day assessment .
I would suggest to google around and read about trading gaps - youtube might have stuff -
Lately when the markets are boring I do watch - live daytrading, Wykoff, gurus just keep trying to learn from others - also been studying more about candlesticks and chart patterns - the weekly charting thread is a great resource too - for all different charting rules -
Watching and then going back over the days action to try to figure out what was going on is one of the best exercise's for Dting particularly - but watching in general is how you learn - it takes a lot of time ….
