Trading the Opening Gap – A High Probability Trade to Make Money

The opening gap trade is a high probability way to earn a living over time. What is this trading strategy and how will you trade it? what is a trade gap

Learn more about this brilliant trading method in this article.

Accurately what is the beginning gap?

A position difference is created by trading activity occurring once the market has closed on one day and before it opens on the next. 

High trading amounts and activities tend to be motivated by news events and after hours trading claims by market leading companies.

When after hours trading drives the share prices up, today’s open will be above yesterdays close building a gap up. The same applies when there is a sustained burst of providing after hours, which provides an impressive gap down.

Why the opening gap is a top probability trade

This is a top probability trade because statistically the gap is filled around 70% of the time during that trading-day.

This means that when a gap down occurs, there is a 70% chance that purchasers will part of and drive the price upwards to meet yesterdays closing price, and often beyond.

The same goes to a gap up. Sellers are likely to predominate when the industry opens and try and drive the price down to fill the space.

This price action is called fading that distance and creates an outstanding possibility to generate profits with a high probability trading method.

For what reason this is suitable for day trading

Having a high likelihood of gap fill developing during the trading program, the opening gap strategy is suitable for day investors. Often the gap will be filled within an hour or two of the start of the session so as long as the gap is significantly large, traders can make some good income early in their day.

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