Gap-down
Gap downs are usually more terbulent than gap-ups and usually game is up very fast in the sense that the normal wait n watch period of 5/10/15 minutes is enough for the fall to complete its run and remaining of the day sees price wandering at around the lows made in these minutes only,giving very little chance (to short) again.
In fact, the gap-down days test one's patience more as one feels left out of action (that has occurred in first 5/10/15 minutes and this particular feeling of "having missed" leads one to get into short trades at inopportune moments, just to get whipsawed.
Broadly ,the instances that occur on gap-down day can be innumerated as below:
Instance -1:
Price opens gap down and keeps sliding down like a waterfall.
Instance-2:
Price opens gap down but then moves up to close the gap and then falls again.
Instance-3:
Price gaps down,moves up to close the gap,and keeps moving up.
Treating Instance-1 as missed bus, an Intra-day trader can always find means to find stocks which fall under remaining two instances by using a simple two step scan:
Step-1: Price opened gap down
Step-2: Price crosses above high of the first 5/10/15 minutes candle
Today, the first 5 stocks that emerged on the basis of above scan were
One can use these points either to go long for gap-fill (which may appear contrarian) or wait for the gap to be filled and then look for opportunity to go long or short as the momentum builds up or fades.
Gap downs are usually more terbulent than gap-ups and usually game is up very fast in the sense that the normal wait n watch period of 5/10/15 minutes is enough for the fall to complete its run and remaining of the day sees price wandering at around the lows made in these minutes only,giving very little chance (to short) again.
In fact, the gap-down days test one's patience more as one feels left out of action (that has occurred in first 5/10/15 minutes and this particular feeling of "having missed" leads one to get into short trades at inopportune moments, just to get whipsawed.
Broadly ,the instances that occur on gap-down day can be innumerated as below:
Instance -1:
Price opens gap down and keeps sliding down like a waterfall.
Instance-2:
Price opens gap down but then moves up to close the gap and then falls again.
Instance-3:
Price gaps down,moves up to close the gap,and keeps moving up.
Treating Instance-1 as missed bus, an Intra-day trader can always find means to find stocks which fall under remaining two instances by using a simple two step scan:
Step-1: Price opened gap down
Step-2: Price crosses above high of the first 5/10/15 minutes candle
Today, the first 5 stocks that emerged on the basis of above scan were
One can use these points either to go long for gap-fill (which may appear contrarian) or wait for the gap to be filled and then look for opportunity to go long or short as the momentum builds up or fades.
And how to handle the other conditions
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