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For most stocks, a Gap is a very significant event. They are profitable events for some and disasters for others. Gaps happen all the time so skill in trading them can be very profitable. Some stocks gap frequently but an actual open trading Gap at the end of the day is rare. Knowing what to do when can be very valuable to those who are prepared when the price suddenly opens up drastically different that the previous day.
In this two hour training session, veteran trader and BetterTrades™ faculty member, Ryan Litchfield, will teach you how to take advantage of Gaps and learn to find trading opportunities in them. Gaps have certain behavior characteristics but they also can have unique reactions with certain stocks and the guidelines to trade them can be confusing. Ryan will teach you a process for trading the different types of Gaps that you may encounter.
Earnings Gaps are calendar events and can be powerful but Gaps can also occur without warning be very dramatic. With proper training and skill, you can learn when and when not to trade Gaps that are likely and also how to trade the surprises.
Ryan will teach you how to recognize and trade the various Gap patterns that you may encounter and discover that each stock has a guide for playing its gaps that you can learn to decode. There are ways to play Gaps as trend and momentum signals. Confirmation and opening Gaps can also be played intraday, but you must know the guidelines. Gaps provide targets for future trading moves and also set up support and resistance levels in patterns. They can confirm patterns and validate pivot points, as well.
You will learn to recognize the different types of Gaps, such as Body Gaps, Clean Gaps, True Gaps, Dirty Gaps, etc., each with its relative significance and prediction signals. You will back test several Gap sequences and trade them in class so that you get some experience in recognizing and playing through Gap events.
This will be a treasure of information and experience that can explode your ability to make Gaps a powerful part of your trading skill set. Don’t miss this powerful and valuable training that can make Gaps a welcome part of your trading experience rather than something you dread!
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