Learn Day Trading

There is not a lot of middle ground when comes to the trading of gaps; traders either swear by them or ignore them. Gaps are formed by a variety of factors, and come in two distinct flavors. Some gaps are formed by institutional traders, others are formed by retail and novice traders, and it is important to be able to identify each type of gap in order to trade it properly.

From the onset, let’s characterize a gap as a significant break in the price action to the upside, or sometimes to the downside. Generally speaking, a gap will look like a missed bar followed by the resumption of the trading action at a significantly higher or lower level than the level of the gap origination. My personal favorite gaps are the ones formed at the opening of the trading of the day versus the closing price (I’m referring to the ES contract here) of the day before. Now I can hear the traders saying that the ES contract trades all night long, continuing directly into the next day. I give overnight traders little weight, as the direction of all night trading is not necessarily indicative of what the session traders are thinking at the opening bell. If there is a 10 point difference between the previously evenings close and the opening bell of the next trading session, there are some definite trading opportunities a trader should consider.

My first consideration when evaluating a gap situation is to decide whether or not the gap is the result of professional traders or amateur traders.

Here is my criteria for evaluating professional versus amateur gaps:

You can learn to trade from a 15 year veteran trader, not a salesmen.  This program comes with a lifetime mentoring program and an educational package that is second to none.  Additionally, the trading system is time tested and has been in use more than ten years. You can get your free emini starter pack (valued at $500) by going to  Click here for your free trading pack
Article Source

Next Post: Fx Illumination Free Report: How A 43-Year-Old Trader With Epilepsy Constantly Humiliates Forex Gurus

how to trade ES,before the bell trading /es,es gaps,how to trade es e mini,trade gaps emini,trading es gaps

Thanks for being my loyal visitors ! The MarketClub 2 Week RISK FREE TRIAL is re-open again, no payments information required. Here's your last chance to join them now - http://bit.ly/2-week-free-trial

This entry was posted on Saturday, February 6th, 2010 at 6:04 pm and is filed under Day Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.