Gapup
NQ Power Range Report with FIB Ext - 10/28/2024 SessionCME_MINI:NQZ2024
- PR High: 20622.25
- PR Low: 20525.25
- NZ Spread: 217.0
No key scheduled economic events
Relatively major weekend gap up
- Advertising potential to break into new month high, into 20800
- Wide NZ spread to start the week above weekend gap
Session Open Stats (As of 1:25 AM 10/28)
- Weekend Gap: +0.24 (open < 20475)
- Gap 10/30/23 +0.47% (open < 14272)
- Session Open ATR: 292.33
- Volume: 34K
- Open Int: 247K
- Trend Grade: Bull
- From BA ATH: -2.8% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 20954
- Mid: 19814
- Short: 17533
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
BA: Back Adjusted
BuZ/BeZ: Bull Zone / Bear Zone
NZ: Neutral Zone
How to Trade Gap Up and Gap Down Opening? Full Guide
What is gap up and gap down in trading?
In this article, I will teach you how to trade gap up and gap down opening . You will learn a simple and profitable gap trading strategy that works perfectly on Forex, Gold or any other financial market.
First, let's start with a theory .
A gap up after the market opening is the situation when the market opens higher than it was closed without any trading activity in between.
Above you can see the example a gap up after the market opening on EURGBP.
The price level where the market closed is called gap opening level.
The price level where the market opened is galled gap closing level.
A gap down after the market opening is the situation when the market opens lower than it was closed without trading activity in between.
Here is the example of a gap down after the market opening on WTI Crude Oil.
Why such gaps occur?
There are various reasons why opening gaps occur.
One of the most common one is the release of positive or negative news while the market was closed.
The market opening price will reflect the impact of such news, causing a formation of the gap.
What gap opening means?
Gap openings reflect the sudden change in the market sentiment.
Gap up will indicate a very bullish sentiment on the market while
a gap down will imply very bearish mood of the market participants.
However, the markets do not like the gaps.
With a very high probability, the gaps are always filled by the market very soon.
We say that the gap is filled, when the price returns to the gap opening level.
Above, you can see that after some time, EURGBP successfully closed the gap - returned to gap opening level.
Such a pattern is very reliable and consistent among different financial markets. For that reason, it can provide profitable trading opportunities for us.
You can see that a gap down on WTI Crude Oil was quickly filled and the price returned to the gap opening level.
How to trade gap opening?
Gap Up Trading Strategy
Once you spotted a gap up after the market opening, you should wait for a bearish signal before you sell.
You should look for a sign of strength of the sellers.
One of the most accurate signals is a formation of a bearish price action pattern:
Double top,
Triple top,
Inverted Cup and Handle,
Head and Shoulders,
Symmetrical or Descending Triangle,
Rising Wedge...
Bearish breakout of a trend line / neckline of the pattern will be your signal to sell.
Look at a price action on EURGBP before it filled the gap.
At some moment, the price formed a double top pattern and broke its neckline. That is our signal to sell.
Your stop loss should lie above the highs of the pattern.
Take profit - gap opening level.
Safest entry is on a retest of a broken neckline/trend line of the pattern.
Safest entry point on EURGBP is the retest of a broken neckline of a double top pattern. Stop is lying above its highs. TP - gap opening level.
Gap Down Trading Strategy
Once you spotted a gap down after the market opening, you should wait for a bullish signal before you sell.
You should look for a sign of strength of the buyers.
One of the most accurate signals is a formation of a bullish price action pattern:
Double bottom,
Triple bottom,
Cup and Handle,
Inverted Head and Shoulders,
Symmetrical or Ascending Triangle,
Rising Wedge...
Bullish breakout of a trend line / neckline of the pattern will be your signal to buy .
Let's study the price action on WTI Crude Oil before it filled the gap.
You can see that the price formed a cup and handle pattern.
Bullish breakout of its neckline is a strong bullish signal.
Safest entry is on a retest of a broken neckline/trend line of the pattern.
Your stop loss should lie above the lows of the pattern.
Take profit - gap opening level.
Following this strategy, a nice profit was made.
Always remember that probabilities that the gap will be filled are very high. However, it is not clear WHEN exactly it will happen.
For that reason, you should carefully analyze a price action and wait for a signal, before you open the trade.
That will be your best gap opening trading strategy.
❤️Please, support my work with like, thank you!❤️
MU: Gap, Pause, Run?Someone recently showed me this 'simple strategy' and I've had some success with it. The idea is, a stock gaps up big, like MU did on this chart back in March and again on September 26th. After the gap up you watch for a pause. The pause can be a day, few days, or even a week, doesn't matter. If the stock falls back down and closes the gap (or get's close), the trade idea is over. But if it trades sideways for a bit and then breaks above the high of the initial gap up candle, in this case 114.80 on 9/26, you enter.
Entry: above 114.80
Volume: strong volume
Target: no target, close the trade when price closes below the 5 or 10 Moving Average.
Stop: depends on your risk tolerance; My plan is the low of the gap up candle, in this case 107.53.
This LONG swing trade idea is not trade advice and is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not enter a trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
QQQ gives more strength to its bullish turn aroundToday QQQ started with another gap up breakout for the 2cd day in a row. Stock retraced then rallied again in the late day.
Stock gapped up again doing another breakout weakening the week long sell off trend.
Retracement that was expected sold off less and at slower pass than the day before
Late day smart money jumped in and pushed the stock to higher highs
Volume experienced a massive spike in last moments of trading which can be indication of price exhaustion. This should cause a temporary pull back next trading day
Overall the bull thesis for QQQ is getting stronger each day.
NDRA mega pump incoming & VHAI I also is about to blow up!!The final wave down isn't going to start til we pump back upto $1.50 or higher.
We have completed wave 1 & 3 of this wave and are in the B wave that I believe will get us above .60 before dumping to take the low.
After taking the low I assume we will then fill the gap.
Should have some serious volitility. At any poing they get enough shorts in I believe they will take $1.50 gap out but they need to trick enough into it.
With the perfect conditions and a big enough liquidation event I see $3.2 -$4 also targets before starting the wave 5 down.
I believe we can see an total beat down when/ very soon after they announce 0.50 rate cuts and that should suppress many small & micro caps til March
Gap Stock Surges 26.87% After Revenue BeatGap shares ( NYSE:GPS ) surged more than 27% in Friday's trading session after the clothing and accessories retailer posted a better-than-expected quarterly earnings report and raised its full-year guidance. Comparable store sales in the quarter rose 3% from a year earlier, driven by each of Gap's four brands posting positive same store sales in the period. New CEO Richard Dickson has led an ambitious turnaround plan that has seen the retailer work on improving its operational efficiency and repositioning the company’s brands.
Gap's ( NYSE:GPS ) comparable store sales increased 3% from the year-ago period, showing a significant improvement from a 4% decline in last year’s corresponding quarter. The turnaround was driven by positive same store sales growth in each of the retailer's four brands, which include Old Navy, Gap, Banana Republic, and Athleta. Looking ahead, the company raised its full-year guidance, saying it now expects net sales to be up slightly, an improvement on its prior forecast where it projected flat annual sales. It also lifted its full-year operating income outlook to the mid-40% growth range, significantly higher than its earlier forecast of growth in the low-to-mid teens.
Gap ( NYSE:GPS ) CEO Richard Dickson told CNBC in an interview following the quarterly results that the plan is working and resonating with investors. Since finding a bottom in May last year, Gap shares have trended higher, with gains accelerating after the 50-day moving average (MA) crossed above the 200-day MA in early October to form a golden cross pattern. Leading into the retailer’s quarterly results, the stock has rallied towards the 50-day MA after a period of recent consolidation, indicating bullish expectations by market participants.
Amid the stock’s projected earnings-driven surge on Friday, investors should closely monitor the $28.50 level, an area where the price would likely run into overhead resistance from its March 2024 high. Gap's ( NYSE:GPS ) upgraded outlook gives Wall Street fresh proof that CEO Richard Dickson's turnaround strategy - to introduce trendier styles across its brands and ramp up marketing efforts to attract picky shoppers - is paying off less than a year after he joined the struggling mall retailer from Mattel.
The stock experience massive surged in price after a "Golden Cross" pattern exhibited since the last week of September, 2023 surging through to New Highs
ROKU - Caught the gap up - Finding a good reentry levelThere's still plenty of room for ROKU to move - but to spot this initial takeoff, we need to track movement on lower time frames to see what is being respected. For a long term play however, a pickup by purple can be a good entry
Happy Trading :)
- TraderDaddyOG
GAPS- HOW TO TRADE THE "GAP - OPENING"This video is for information/education purpose only. you are 100% responsible for any actions you take by reading/viewing this post.
please consult your financial advisor before taking any action.
----Vinaykumar hiremath, CMT
(Earlier video was missing the mouse pointer, it is rectified in this video)
PDD - Our patience paid off! Our "lines" tell us everythingWe finally got the breakout we were waiting for on PDD and the makers set us up perfectly for a post-earnings gap up.
Happy for everyone who followed along our analysis and held strong on this one. Or maybe even added on the dip like I did.
We can expect some resistance at top of yellow here before a retest of white tapered selling and then an attempt to breakout of orange tapering again. See you all there!
Happy Trading :)
MSFT - Why I took swing calls overnight -how I predicted the gapSupport by an algo leads to resistance by that algo. In this case, we were no longer supported by teal selling but rather by HTF buying continuation. You could see that in order to finally break out of the tapered teal selling, we needed for price to build liquidity until it could activate our HTF buying continuation algos.
More analysis like this to come! Stay tuned!
Happy Trading :)
SQ's rally looks unstable and weakSQ's recent rally shows weakness and not founded on solid reasoning. Current price level appears risky.
SQ had a good rally from Oct to Dec and contracted a fair amount and held. Later on....
SQ had bad earnings
NVDA a very unrelated stock had great earnings pushing SQ up
Recent gap up is clearly irrational
Recent rally is unstable and should expect a contraction in the nearish future
First Wave BioPharma $40 PT Upside potentialBefore the close of the year the Bio Pharma Sector started running wild. It doesn't surprise me why i'm drawn to this company with all the catalysts coming out. Recently with a PT 40 From Roth MKM.
The more you read about the news that comes from this company between CEO investor relations, Merger Deal with Immunogen and entering their phase 3 trial there is so much Upside potential.
Although short term there's a lot of turbulence in the 5.00-5.38 range if it can break and hold strong this stock can get there pretty quick.
Currently holding a Long position.
Trade Responsible,
#TradeTheWave 🏄🏽♂️🌊
Gapped But Not ForgottenFINNIFTY after a series of up sharp down moves is headed towards the zone where an earlier gap was not met. From my recent experience, gap up and gap down are always filled back either in the short term or a while after. Here we see FINNIFTY heading back to the unfilled zone which lies between 21305 to 21285.
After a heavy downfall today, the index formed a symmetrical triangle pattern which could possibly head to clear the old dues. Also, just below the unfilled zone lies the recent touch zone of 21280 to 21270 having served as previous support & resistance in December 2023. Whether that happens tomorrow or not, it is yet to be seen.