By Alessio Rastani
Simple Set Up Instructions:
1. Set up a 5-minute or 2-minute Chart of the Dow mini Futures (YM) – For free charts and trading platform we recommend ETX or go to http://www.leadingtrader.com/etx
2. The timeframe for this chart must be from 9:30 ET to 16:15 ET
3. This chart will show you the Opening Gap, which essentially is the gap from yesterday’s closing price on the Dow at 16:15 ET to today’s open at 9:30 ET
4. You trade in the direction to fill the gap (see below)
5. If the open on the Dow today is lower than yesterday’s close, then we go long (buy) and if open above yesterday’s close then we go short (sell short).
6. The gap on the Dow must be a minimum of 20 points and no more than 100 points
7. Enter with a market order at the market open i.e. 9:30 ET
8. Use a 20 (or 25) point stop-loss
9. The first target is when half the gap fills.
10. The final target is yesterday’s close (or a few points away from it).