Gauging an Upside Opening Gap -- Part I
All too often, traders assume every opening out-of-range gap should be faded. By now, though, I trust we can all agree that it comes down to a matter of context. The conditions surrounding the opening gap are what determine whether we should enter the session with an inherently long or short bias.E-Mini S&P 500 Futures -- Daily Source: eSignal View Chart » View in New Window »
For this two-part article, I'll be addressing the upside opening gap that took place Oct. 5, 2012. To begin, I want to review the market's conditions immediately prior to that gap, so do take a moment to go over the above chart -- a daily volume profile for the E-mini S&P 500 futures. In my view, the most important takeaways from the chart are as follows:...433 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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