Gap up trading(Your knowledge grows when you share it)
Nifty was unable to cross the resistance at 8820-8825 level for few days. Finally it broke the resistance with gap up. For day traders gap up opening is tough to trade. Risk is more and reward is less. Normal days I enter trade after 30 mins of market opening. For gap up I use 15 mins chart. 8840 was the low and 8886 was the high in first 15 mins candle. Entered at 8835 and exit at 8820 in few mins. There was no time to think about risk or reward. Gained 15 points.
The points to remember during gap up or gap down without any news are 1. remember support/resistance levels 2. reward is less, risk is heavy. 3. Gap up breaking resistance indicates strength and dont expect the market will fall on the same day.
This post is the second one for the series "Traders Queries - Guide me in trading". My previous post is "Feb 16 : Trader's Queries - Guide me in Trading!"
Note : I am a private trader. I am not giving free/paid calls. I am not taking trading classes. I am here to improve my technical knowledge. This is my trading analysis journal.
The points to remember during gap up or gap down without any news are 1. remember support/resistance levels 2. reward is less, risk is heavy. 3. Gap up breaking resistance indicates strength and dont expect the market will fall on the same day.
This post is the second one for the series "Traders Queries - Guide me in trading". My previous post is "Feb 16 : Trader's Queries - Guide me in Trading!"
Note : I am a private trader. I am not giving free/paid calls. I am not taking trading classes. I am here to improve my technical knowledge. This is my trading analysis journal.
Comment:
Friends please share your knowledge about gap up trading with an example chart.