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trading_strategies:gap_trading_strategies [2019/06/24 19:39] 127.0.0.1 external edit |
trading_strategies:gap_trading_strategies [2023/10/12 14:45] jayanthi [What Is Gap Trading?] |
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| ====== Gap Trading Strategies ====== | ====== Gap Trading Strategies ====== | ||
| - | ===== Introduction ===== | + | ===== What Is Gap Trading? ===== |
| - | Gap trading is a simple and disciplined approach to buying and shorting stocks. Essentially, one finds stocks that have a price gap from the previous close, then watches the first hour of trading to identify the trading range. Rising above that range signals a buy, while falling below it signals a short. | + | Gap trading is a strategy that exploits price differences between the closing price of one day and the opening of the next. These gaps can arise from news or financial events. Traders anticipate whether the gap will fill or if prices will continue in the direction of the gap. Ultimately, a trader would decide whether to go long or short a stock based on a particular gap trading setup. |
| ===== What is a Gap? ===== | ===== What is a Gap? ===== | ||