Summary

The trade sets up when price hits an unfilled gap. This can be a closing (cash) gap, an ex-gap or the futures close gap from the previous day or historical gaps left open for days, weeks or even months. Historical unfilled gaps act like magnets in the market and therefore make excellent profit targets.

Entry: as close to the level as possible; wait for the subtlest sign that the level is active.
Exit: stop loss is 10pts and trade is automatically STE at 1:1
Take profits: 50% at 2:1 and the rest at 5:1

Results

Trading between 9:00 and 11:00 mid-Oct 2018 to end-Feb 2019. The stats during 2018 are likely to be less accurate as I was developing my journaling process over this period. * This includes trades that would have been STE at 1:1, so it should be reduced by 25% to be conservative.

 # of TradesTotal Actual PnL EUR ( %) R @ 900 risk/tradeActual Average R/winnerActual Losses # (%)Achieved =>1:1, <2:1 # (%)Achieved => 2:1 # (%)Achieved =>5:1 # (%)Achieved 10:1 +# (%)Pnl w BE at 1:1, 50% at 2:1 and 100% at 5:1 Theoretical PnL vs. Actual PnL
Gap fill fade217,083 (7.5%) (+7.9R)1.210 (47%)4 (19%)10 (47%)4 (19%)1 (5%)-7+10+(2.5x4) =13+5.1R*

 

Why it works

The market’s function is to trade and maximise trade. If price gaps up or down at today’s open versus the previous days’ closes and/or High/Low, there will be a price range in the market where no trade has taken place. The market will return to these untraded levels as if attracted by a magnet. The move towards to the level may therefore not be driven by any factors other than the markets’ impulse to close the gap and if this is the case, it will reverse when it gets there, creating a trading opportunity.

Cash gaps, ex-gaps and futures gaps

Skills and qualities required

  • keep track of all historical unfilled gaps
  • keep track of previous day’s three possible gaps and their relationship with today’s open
  • read ST and LT trend and exhaustion moves to determine the probability of a reversal at gap fill
  • make precise, decisive entries against fast moves

Filters

These are fantastic trades but they must be selected carefully.  A fast move into the level inside my Neutral Zone is a perfect setup but a fast move into the level, when price has just broken out of my Neutral Zone is likely to be a disaster.

PA context that supports the trade

  • it setups up within my Neutral Zone,
  • it is outside my neutral zone but price has started to range after breaking a level, and especially if the trade is in the direction of the overall trend.
  • the gap or ex-gap is a level of confluence and when trade is in overall market direction; in this case, it will perhaps set up as a 3Min Bolli as well

PA context or other factors that cancel the trade

  • do not trade against the first impulse after a KL or TL break
  • do not trade a stair-step down into the level if the trade is against the overall direction of the market.

Open issues

  • how to select these trades?
  • if the trade also sets up as a 3Min Bolli, do I double risk?
  • CM used a method where he would only take it counter-trend, DMs would only take it if there was a fast move into it
  • sometimes the market will test these levels more than once and when that happens, do I trade it? In what PA does it work to keep trading this level?

Examples

Just buy Fut close (twice)… that’s it
If a gap has filled during the Fut session, is it still valid?
3 setups in one
Fade and gap fill and 3Min Bolli set up together
Power of unfilled gaps as targets and reversal points
Five losses in a row so what happened?
Four setups valid for this 15R trade
Fading opening spikes into levels
Fade gap fill doesn’t need a 3Min Bolli set up
When it’s good to trade counter trend
Gap and Ex-gap fades

36 Responses to “Gap fill fade (Futures, Cash and Ex-gaps)”

  1. local auto body shops in Greensboro

    … [Trackback]

    […] Find More on to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  2. con heo dat remix

    … [Trackback]

    […] Find More to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  3. Drogen kaufen im Darknet

    … [Trackback]

    […] Find More here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  4. Darknet

    … [Trackback]

    […] Find More Information here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  5. final expense

    … [Trackback]

    […] Read More here on that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  6. www.jaguarqq1.site

    … [Trackback]

    […] Information to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  7. Internet Marketing

    … [Trackback]

    […] Info to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  8. Best Real Estate Agency in San Diego California 858-356-8088

    … [Trackback]

    […] Read More to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  9. mejaqq pkv

    … [Trackback]

    […] Info to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  10. 안전놀이터

    … [Trackback]

    […] Find More Information here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  11. best dentist in memphis

    … [Trackback]

    […] Read More Information here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  12. 카지노사이트

    … [Trackback]

    […] Find More to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  13. satta king 2020

    … [Trackback]

    […] There you will find 83052 additional Information to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  14. https://archiwnetrze.pl/forum/

    … [Trackback]

    […] Find More Info here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  15. ajj cornhole

    … [Trackback]

    […] Information on that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  16. https://enterthenews.pl/forum/

    … [Trackback]

    […] Find More Information here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  17. SEOgine Virginia Beach SEO

    … [Trackback]

    […] Find More Info here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  18. judi poker online

    … [Trackback]

    […] Find More to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  19. your koi guide

    … [Trackback]

    […] Read More here on that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  20. dominoqq

    … [Trackback]

    […] Read More on on that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  21. Hemp Loans

    … [Trackback]

    […] Find More here on that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  22. situs judi online

    … [Trackback]

    […] Information to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  23. opinie

    … [Trackback]

    […] Info to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  24. child porn

    … [Trackback]

    […] Read More Info here on that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  25. auto generated contents

    … [Trackback]

    […] Info to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  26. 조커바카라

    … [Trackback]

    […] Information to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  27. Christianity

    … [Trackback]

    […] Find More here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  28. ANDEN Corporation Company Limited

    … [Trackback]

    […] Find More here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  29. yyorkie.com do yorkies shed

    … [Trackback]

    […] Find More Info here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  30. Rick Simpson Oil

    … [Trackback]

    […] Find More Information here to that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  31. Order Viagra Online

    sildenafil generic

    sildenafil

  32. mens ed pills

    new ed pills

    best erection pills

  33. non prescription ed pills

    ed meds online

    best erection pills

  34. ATLANTA NEW HOMES 1% NEW HOME REBATE SAVE THOUSANDS

    … [Trackback]

    […] Read More Info here on that Topic: lovethedax.com/trade-plan/setups/gap-fill-fade-futures-cash-and-ex-gaps/ […]

  35. cheap erectile dysfunction pills online

    male erection pills

    top erection pills

  36. generic cialis

    buy generic cialis

    sale cialis

Comments are closed.