Is Trading the Gap an effective Emini Trading Strategy?
Gap Trading is an area where many traders agree to disagree. While some discount it entirely, others view the "filling of the gap" with a fervor akin to a religious pilgrimage. In this article we will look at both sides of the discussion.
Trading The Gap - An Effective Emini Strategy?
For many traders, the very cornerstone of their trading strategy revolves around whether or not the Gap will fill. Before we continue, let's define what a Gap really is...
A price gap found on a price chart for an asset. These gaps are brought about by normal market forces and, as the name implies, are very common. They are represented graphically by a non-linear jump or drop from one point on the chart to another point.
S&P 500 Emini Futures
We seem to spend a lot of time talking about our Weekly Trading Zones don't we?
It has nothing to do with catching tops or bottoms as we seem to be utter failures in that arena. In fact, we don't even try. Our methodolgy almost seems like cheating. (I assure you it's not) We wait for the market to actually make a turn, then... we wait for the turn to be confirmed, then... after most folks have nodded off, we take our trade. (Wake Up!)
The average intra-day swing in the S&P 500 Emini Futures is 3-5 points. Our goal, our methodolgy, our indicators, are designed to simply scoop 2 points out of the middle. No muss, no fuss.
Am I saying "Trading is Easy"?
"But It Can Be Simple!"
How easy? Come find out...
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