Hi Everybody,
For those of you who have read and studied the Trading Course, as well as followed this Blog for a while will know that when the markets “gap up or down” on the open, I look for areas of DP support or resistance for a reversal. This happens loads of times where the initial Gap Open is reve4rsed within a few bars of the open. This is exactly what happened yesterday on the 3min ES. Target is this the “opposing” DP zone.
As you can see, this higher DP nailed the high beautifully just before the ES started to decline just after the open. Then ES then continued to decline until it reached the opposing DP where a lovely +6R Profit (ignoring slippage and commission) was available.
As a PS, for those of you who are very observant will have noticed that the STF was “strong” as this target was reached, so “strictly” I should have been looking to “run” this short trade. And in fact, if the ATRStop was used, the profit would have been slightly higher at +7.7R. But wither way, this was a nice trade, and a great example of the Gap Opening play.
Thanks, Steve
For those of you who have read and studied the Trading Course, as well as followed this Blog for a while will know that when the markets “gap up or down” on the open, I look for areas of DP support or resistance for a reversal. This happens loads of times where the initial Gap Open is reve4rsed within a few bars of the open. This is exactly what happened yesterday on the 3min ES. Target is this the “opposing” DP zone.
As you can see, this higher DP nailed the high beautifully just before the ES started to decline just after the open. Then ES then continued to decline until it reached the opposing DP where a lovely +6R Profit (ignoring slippage and commission) was available.
As a PS, for those of you who are very observant will have noticed that the STF was “strong” as this target was reached, so “strictly” I should have been looking to “run” this short trade. And in fact, if the ATRStop was used, the profit would have been slightly higher at +7.7R. But wither way, this was a nice trade, and a great example of the Gap Opening play.
Thanks, Steve
