The opening gap down over the last two weeks would have been a...

The opening gap down over the last two weeks would have been a pattern to catch onto (retrospective TA, I know..) I would love to narrow down which market participants, what strategy is being played for profit, but stock is being sold pre open. Id love to have a stronger theory than just 'weak hands'.. I don't think its that simple. If you know who's selling or who's buying, and why, you can get with that pattern and profit from it. Sounds simple, whilst it feels like walking around a room in the darkness looking for a light switch.

It has shown an average of about 3 pips per gap down from a flat base/ squeeze from the previous days close. Arguably you would not be able to make this trade if you are an intraday trader and do not hold stock overnight, or maybe you didn't want to risk getting on the wrong side of a good news announcement before open. Also depending on where you get in would determine your profit, if you take bids or offers in the que or buy at market price. I'm learning through my own results that IMU is offering enough time to get into the que and add a pip or two to a trade, patience is hard to grip when your waiting in a cue at slack tide.. I suppose all these things are to be learnt over time and repetition of market situations.


GLTAH,
Judo