DELAYED GAP OPEN SIGNALS
On occasion market will make a very large opening gap up or down.
The gap size will be much larger than usual.
So the market will need to make a considerable move before it can trigger entry on the above described GAP OPEN method.
So comes the DELAYED GAP OPEN method.
DELAYED GAP DOWN OPEN SIGNAL:
1. Gap lower opening : In case of gap lower opening, you will place a buy stop 2 ticks above the low of the previous day. This is similar to the basic GAP OPEN method.
2. If at the end of the first hour of trading, order is not filled then we will examine current price in relation to current day's opening price.
-----> If the current price is higher than the opening price by 2 ticks after the end of the first hour of trading, you will enter the long position at market. Your initial stop loss will be money management stop loss or stop loss several ticks below the low of the day when the order was filled.
-----> if the current price at the end of the first hour is below the opening price, you will enter enter a buy stop 2 ticks above the current day high.
On occasion market will make a very large opening gap up or down.
The gap size will be much larger than usual.
So the market will need to make a considerable move before it can trigger entry on the above described GAP OPEN method.
So comes the DELAYED GAP OPEN method.
DELAYED GAP DOWN OPEN SIGNAL:
1. Gap lower opening : In case of gap lower opening, you will place a buy stop 2 ticks above the low of the previous day. This is similar to the basic GAP OPEN method.
2. If at the end of the first hour of trading, order is not filled then we will examine current price in relation to current day's opening price.
-----> If the current price is higher than the opening price by 2 ticks after the end of the first hour of trading, you will enter the long position at market. Your initial stop loss will be money management stop loss or stop loss several ticks below the low of the day when the order was filled.
-----> if the current price at the end of the first hour is below the opening price, you will enter enter a buy stop 2 ticks above the current day high.