Advanced Gap
Trading Tactics
IntradayMoney.in
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= Transitions
Pre-Market
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Gapping Up
Opening
Gapping
Flat
Down
Market Cycle
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Where are we ?
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Transition Among Phases
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3
1
3
A
B
Flags
Breakdown
Patterns
Flags
IntradayMoney.in
3
A
2
3
1
Breakout
Patterns
3
1
Mini Market Cycle
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Trade
Execution areas
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Price
Action
3
1
4
Breakout
IntradayMoney.in
4
ENTRY
Higher highs and higher
lows provide evidence of
uptrend
Major Up Trend
Higher Highs
Higher Lows
C
A
Flags
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Pre-Market
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Gapping Up
Once
Markets
open
Opening
Gapping
Flat
Down
Continues
Continues
Continues
Higher
Higher
Higher
Sideways
Sideways
Sideways
Breakouts
Fills the Gap
Up
Fills the Gap
Up
Fills the Gap
Up
Rallies or
Pullbacks
Rallies or
Pullbacks
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Higher
Price
Action
Opening Ranges
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Ideal trading
situation
Entry
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ENTRY
LONG Entry
Up trend
Higher Highs & Higher Lows
Stop loss
Bar-by-Bar Analysis
0
Pre Market Session
Extremely
Aggressive
1
Morning Session
Aggressive
Breakout/Breakdown
Prior Day Highs & Lows
Strategies
(i.e., Bull/Bear
Traps)
Higher Highs
Lower Lows
Higher Highs
Lower Lows
2
Mid-Day Session
Moderate
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3
Afternoon Session
Diligent
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Friday-Monday
only sure shot tips..! Daily Swing
Higher Highs
Lower Lows
Higher Highs
Lower Lows
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2-Bar Reversals
3-Bar Reversals
Opening Range
Breakouts
Opening Range
Breakouts
Opening Range
Breakouts
2-Bar Reversals
3-Bar Reversals
2-Bar Reversals
3-Bar Reversals
2-Bar Reversals
3-Bar Reversals
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2
1
1
2
Up Trend
1
IntradayMoney.in
Up Trend
breakdown
Breakout
Breakdown
Place stops above the previous swing pivot high or above
the previous entry setup
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3
1
2
1
3
1
Up Trend
2
3
IntradayMoney.in
Gap
Up Trend
breakdown
Gap
Breakout
Wait for confirmation of price action
Gap
Breakdown
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Down Trend
breakout
Down Trend
Breakout
Breakdown
IntradayMoney.in
3
1
2
Place stops under the previous swing pivot low or under the
previous entry setup
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only sure shot tips..! Gap
Down Trend
breakout
Gap
Breakout
Gap
Breakdown
Down Trend
IntradayMoney.in
3
2
1
2
3
Wait for confirmation of price action
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Transition Among
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Phases
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T2-3
Trade #2
Trade #3
Profit
Lose
Lose
2R
1R
1R
T3-4
Transition from
Phase 2 to 3
Down Trend
Breakout
Trade # 1
Transition from
Phase 3 to 4
IntradayMoney.in
Potential gaps in W
Patterns & Variations
T1-2
T4-1
Transition from
Phase 4 to 1
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Transition Among
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Phases
only sure shot tips..!
Up Trend
breakdown
T2-3
Trade # 1
Trade #2
Trade #3
Profit
Lose
Lose
2R
1R
1R
T3-4
Transition from
Phase 2 to 3
Potential gaps in
M Pattern & Variations
IntradayMoney.in
Intraday
T1-2
Transition from
Phase 1 to 2
T4-1
Transition from
Phase 4 to 1
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1.
Identify gap and whether it violates the conditions for defining trending price
action
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2. only
Use OR
opening
range strategies to anticipate the setups
sure
shot tips..!
3.
For up trend breakdown, find previous Phase 2 price action
4.
For down trend breakout, find previous Phase 4 downtrend
5.
Use Fibonacci analysis on the previous move
6.
Consider breakout/breakdown as a retracement first and identify 38%-62% levels
(i.e., first preliminary targets)
IntradayMoney.in
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Price
Action
Ideal trading
situation
4
4
Natural pullbacks
IntradayMoney.in
4
ENTRY
LONG Entry
Up trend
Higher Highs & Higher Lows
in price action
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IntradayMoney.in
Are the e-mini futures trending or trading sideways
(i.e., consolidating, range-bound or congestion?
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Higher
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Timeframe
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Price
Action
Price action from prior day close
Gap Up
Flat Open
How much?
IntradayMoney.in
Gap Down
Phase 2
Up trend
Higher Highs & Higher Lows
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Higher
Timeframe
Price action from prior day close
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How much of a gap?
Gap
2. Bullish Rally
Flat Open
Prior Day
Close
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Gap Down
Phase
2
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Higher
Timeframe
Price action from prior day close
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Prior Day
Close
2. Bullish Rally
Flat Open
Gap
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How much of a gap?
Gap Down
Phase
2
Today
Previous Day
Close(s)
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Scenario #1
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Scenario #2
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Pre-Market
IntradayMoney.in
Scenario #3
9:30 EST
Market Opens
~10:30 EST
~2:30 EST
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Price
Action
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Ideal trading
situation
Higher
IntradayMoney.in
Opening Ranges
ENTRY
LONG Entry
Up trend
Higher Highs & Higher Lows
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2B/3B Reversal &
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crosses back into OR
Intraday
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30 min High
30 min High
IntradayMoney.in
2B/3B
Reversal
2B/3B
Reversal
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Use daily opening of price action to gauge
intraday momentum
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Open
Open
IntradayMoney.in
2
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Reference for Gaps
IntradayMoney.in
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Stops
M-Pattern
Initial Stop
Fibonacci
Retracements
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(1R)
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C
2
1
Gap
3
Flags
IntradayMoney.in
Preliminary
target
Unless there is adequate reward remaining in the trade with the gap
skip the trade
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Monday
Tuesday
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only sure
Highshot tips..!
5 min High
5 min Reversal
IntradayMoney.in
Pre-Market
Gap
Late Day
Breakdown
Low
Gap
Fill
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Monday
Tuesday
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5 min High
High
IntradayMoney.in
Pre-Market
Gap & Gap Fill
Late Day Rally
