DislikedMay I add : outside of FX, ~80% of gaps get filled the same day and the rest usually in 5 to 10 days. This might be even a higher % in FX.
A gap trade is a fade trade. Short a gap up.
Your direction was right. But the gapplay is over when the gap is closed.
To be safe, take halve off at 50% gap fill, and protect profit with stop.
In this case, with a small gap, to make some money you have to trade at
least 15 lots. LOL.Ignored
Great explanation.....