Gap trading is both a science and an art form.
When preparing to trade any stock, It’s extremely important to understand where your entry point should be – but equally important, where do you exit and take profit?
There are two primary gap trading strategies that work best and are taught in the LazyGapTrader course.
One of those methods is finding the area where a stock will fill a gap left open from a prior trading day.
Why do traders want to know this specific area? Because under normal conditions, a stock is likely have a price reaction in the other direction – creating a profit opportunity for gap traders.
It’s always important to get a refresher to understand exactly what traders should be looking for when a stock is close to filling a gap.
As you look at a candle stick chart with an open gap, there can be some confusion on the the exact price where the gap would be considered filled, and the stock would be expected to have that juicy price reaction we’re looking for.
Traders who have purchase the LazyGapTrader course understand that the video material is a fantastic foundation to understand and begin identifying gap trading opportunities.
These same traders also recognize that there is a need for additional support to ensure the strategy and process is crystal clear.
My commitment is for all traders to receive support that exceeds expectations.
Sometimes there are questions asked where the entire community of gap traders would benefit from the answer.
One of the members who is studying the course was unclear on exactly what price a gap would be considered filled. Top of Candle, bottom of candle, what if it’s a red candle, green candle, etc..
The video below was made to answer this specific question, and since it was helpful to the inquiring member, it may be helpful to you too.
If you have a question about Gap Trading or any other market related item, please feel free to ask away – you might be surprised with the answer.