Morning Gaps Follow Rules Even In Crazy Markets

David Frost // Blog

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December 6  

This morning investors and traders were greeted with sizable gap down across markets.  

Traders see that as one thing.  Opportunity.

We trade the morning gaps.  Stocks that are gaping either up or down from the previous days' close, present opportunity.  

The real opportunity is for the traders that can identify the highest probability price where these stocks will first be drawn to like a magnet, then have a price reaction in the opposite direction.  

It all makes total sense when you understand the why behind the strategy.

 

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost