Emini Podcast | Gap And Stall | Episode #1,560

S&P 500 Emini Futures

Friday was a trend down day, but things firmed up at the end and the close was quite bullish. On an hourly chart you will notice that the final candle on Friday had no wick on the top. This tells us the last orders to cross the desk were buyers looking to get long before the weekend, and/or traders exiting short positions. Remember, it takes two to tango. It takes both a buyer and a seller to create a transaction.

True to form the market did gap higher on the Globex open Sunday night and promptly stalled. Based on the "Gap and Stall", we issued the following Tweet -

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Trading The Gap - An Emini Futures Strategy

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...

Common Gap

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. 

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