Recommended Brokerage and FREE Charts:
All Countries (Except United States) CLICK HERE
UNITED STATES – see below
United States Traders
Esignal This is a professional charting software which we recommend for US Traders.
Training Video: How To Trade The Opening Gap
To see this video in High Quality click here
Simple Steps for Trading The Opening Gap:
1. Set up a 5-minute or 2-min Chart of the Dow mini Futures (Wall Street Futures on ETX Capital Platform)
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).
Recommended Books For Trading
5 Books That Will Transform your Trading CLICK HERE