ASX Morning call 26th July, page-43

Hi: Speaking for myself here only, it's not an obsession, it's a money making trading strategy. I only trade SPI Futures gaps, so can't comment on stock gaps, but there are numerous articles on the internet regarding that subject. SPI Futures gaps provide a roadmap for where the market is likely to go, and are to be used with other trading tools, which for me are EMA crossover arrows and R and S levels which I calculate each day based on the night session. SPI Futures gaps have a high probability fill ratio as it is the benchmark trading product listed over the XJO, traded on an exchange, not via a market maker, so the gaps on futures charts are standard and consistent on all futures traders charts - yesterday was a good example. CFD gaps are non-standard, as each CFD chart is provided by that particular CFD market maker, so as an example, just to pick a couple, a gap on an IG chart may not necessarily appear in the same place as a gap on a CMC chart, and may not be a gap at all on the SPI Futures chart. As far as stops go, I use a percentage, but risk mitigation is an individual tool tailored to each individual traders risk appetite and capital base. Cheers