A Guide to Gap Trading Strategies: Developing a Method for Day Trading

Originally published at: https://optimusfutures.com/tradeblog/archives/gap-trading-strategies/%20

This article on Gap Trading Strategies is the opinion of Optimus Futures. Key Points: Market gaps can occur periodically, and you must be very specific in your day trading entries when developing market strategies for gaps. Gaps create setups, but they aren’t entries in and of themselves. Several different price gaps can occur, and knowing the risks and rewards behind each setup could help you understand how to day-trade gaps. How other factors, such as average volume, general price trend, etc., affect gaps can help you develop a simple day trading strategy. What is a Trading Gap Gaps are an…