Gap Fills Act as Pivot

[Soultrader 12]

When playing gaps it is always important to scale out at half a gap fill and at the actual gap fill. These levels will usually act as a key pivot for price reversal. For example, let's say a stock closes at $59 and opens down the next morning at $54. If you decide to fade the gap, a good target will be $56.50 for half position and the rest at $59.

 

Learn more about gaps here.

[stalor455 10]

Thanks for posting,, I'm starting to fade gaps n ES & YM, but the link doesn't work ???