Advanced Gap

Trading Tactics

IntradayMoney.in
 www.intradaymoney.in
= Transitions

Pre-Market
www.dailyniftytips.in
only sure shot tips..!

Opening Gapping
Gapping Up
Flat Down Market Cycle

IntradayMoney.in
Where are we …?
 www.intradaymoney.in

Transition Among Phases

Breakdown
www.dailyniftytips.in 1 Patterns
only sure shot tips..!

2 3

B A
2 C
3
1 Flags
Flags 1
2

IntradayMoney.in
C 3
B
A
2 3 2 3

1 Breakout
Patterns 1
 4 www.intradaymoney.in

Price
Mini Market Cycle 4 Action
www.dailyniftytips.in
Trade Execution areas
only sure shot tips..!
2 3
4

1
4
Breakout
4

IntradayMoney.in
B
4
Major Up Trend 3
•Higher Highs 2
ENTRY • Higher Lows 1
C

Higher highs and higher A

lows provide evidence of Flags
uptrend
 www.intradaymoney.in

Pre-Market
www.dailyniftytips.in
only sure shot tips..!
Opening Gapping
Gapping Up
Flat Down

Continues Continues Continues Rallies or

Higher Higher Higher Pullbacks

Once
Markets
IntradayMoney.in
Sideways Sideways Sideways Breakouts
open

Fills the Gap Fills the Gap Fills the Gap Rallies or
Up Up Up Pullbacks
 www.intradaymoney.in
Higher
Opening Ranges Price
Action
www.dailyniftytips.in
only sure shot tips..!

Ideal trading
situation
Entry

IntradayMoney.in
ENTRY Stop loss

LONG Entry
•Up trend
•Higher Highs & Higher Lows Bar-by-Bar Analysis
 www.intradaymoney.in
0 1 2 3
Pre Market Session Morning Session Mid-Day Session Afternoon Session
Extremely Aggressive Moderate Diligent
Aggressive
www.dailyniftytips.in
only sure shot tips..! Daily Swing
Friday-Monday
Breakout/Breakdown Strategies
(i.e., Bull/Bear
Prior Day Highs & Lows Traps)
Higher Highs Higher Highs Higher Highs Higher Highs
Lower Lows Lower Lows Lower Lows Lower Lows

Breakouts
IntradayMoney.in
Opening Range Opening Range
Breakouts
Opening Range
Breakouts

2-Bar Reversals 2-Bar Reversals 2-Bar Reversals 2-Bar Reversals

3-Bar Reversals 3-Bar Reversals 3-Bar Reversals 3-Bar Reversals
… … … …
 www.intradaymoney.in

www.dailyniftytips.in
only sure shot tips..! 2 3
2 1
1
3 1
Up Trend 2 3

1
IntradayMoney.in
2 3
Up Trend
breakdown Breakout Breakdown

Place stops above the previous swing pivot high or above

the previous entry setup
 www.intradaymoney.in

www.dailyniftytips.in 3
only sure shot tips..! 1
2 2
1
3
Up Trend 1 2
3
1
IntradayMoney.in
2 3
Gap
Up Trend Gap Gap
breakdown Breakout Breakdown

Wait for confirmation of price action

 www.intradaymoney.in

www.dailyniftytips.in
only sure shot tips..!

Down Trend
Breakout Breakdown
breakout
Down Trend 1 2 3

1
IntradayMoney.in
3 2 3 1

2
1
2 3

Place stops under the previous swing pivot low or under the
previous entry setup
 www.intradaymoney.in

www.dailyniftytips.in
only sure shot tips..! Gap
Down Trend Gap Gap
breakout Breakout Breakdown

1 2 3
Down Trend

IntradayMoney.in
3
3
1 2
1
2

1 2
3

Wait for confirmation of price action

 www.intradaymoney.in

Trade # 1 Trade #2 Trade #3

Transition Among
www.dailyniftytips.in
Phases Profit Lose Lose
only sure shot tips..!
2R 1R 1R

T2-3 T3-4
Transition from Transition from
Phase 2 to 3 Phase 3 to 4
Down Trend

IntradayMoney.in
Potential gaps in W
Breakout Patterns & Variations

T1-2 T4-1
Transition from
Phase 4 to 1
 www.intradaymoney.in

Transition Among Trade # 1 Trade #2 Trade #3

www.dailyniftytips.in
Phases
Profit Lose Lose
only sure shot tips..!
Up Trend 2R 1R 1R
breakdown
T2-3 T3-4
Transition from
Phase 2 to 3
Potential gaps in

IntradayMoney.in
M Pattern & Variations

Intraday
T1-2 T4-1
Transition from Transition from
Phase 1 to 2 Phase 4 to 1
 www.intradaymoney.in
1. Identify “gap” and whether it violates the conditions for defining trending price
action
www.dailyniftytips.in
Use OR
2. only – “opening
sure range” strategies to anticipate the setups
shot tips..!
3. For up trend breakdown, find previous Phase 2 price action
4. For down trend breakout, find previous Phase 4 downtrend
5. Use Fibonacci analysis on the “previous” move
6. Consider breakout/breakdown as a retracement first and identify 38%-62% levels
(i.e., first preliminary targets)
IntradayMoney.in
 4 www.intradaymoney.in

Price
4 Action
www.dailyniftytips.in
only sure shot tips..!
4

Ideal trading 4
situation
4 Natural pullbacks

IntradayMoney.in
4 in price action

ENTRY

LONG Entry
•Up trend
•Higher Highs & Higher Lows
 www.intradaymoney.in

www.dailyniftytips.in
only sure shot tips..!

IntradayMoney.in

Are the e-mini futures trending or trading sideways

(i.e., consolidating, range-bound or congestion?
 www.intradaymoney.in

Price
Higher Action Price action from prior day close
www.dailyniftytips.in
Timeframe Gap Up
only sure shot tips..!

Flat Open How much?

IntradayMoney.in
Gap Down

Phase 2
•Up trend
•Higher Highs & Higher Lows
 www.intradaymoney.in
Higher
Price action from prior day close Timeframe
www.dailyniftytips.in Gap Up
only sure shot tips..!

How much of a gap?

Gap
2. Bullish Rally

IntradayMoney.in
Flat Open

Prior Day
Close

Gap Down Phase

2
 www.intradaymoney.in
Higher
Price action from prior day close Timeframe
www.dailyniftytips.in Gap Up
only sure shot tips..!

Prior Day
Close

Flat Open 2. Bullish Rally

Gap IntradayMoney.in How much of a gap?

Gap Down Phase

2
 www.intradaymoney.in
Previous Day Today
Close(s)

www.dailyniftytips.in
Scenario #1 1 2 3
only sure shot tips..!

Scenario #2
Pre-Market

IntradayMoney.in
Scenario #3

9:30 EST ~10:30 EST ~2:30 EST

Market Opens
 www.intradaymoney.in

Price
Action
www.dailyniftytips.in
only sure shot tips..!

Ideal trading
situation
Higher

IntradayMoney.in Opening Ranges

ENTRY

LONG Entry
•Up trend
•Higher Highs & Higher Lows
 www.intradaymoney.in

2B/3B Reversal &

Intraday
www.dailyniftytips.in
crosses back into OR
only sure shot tips..!

30 min High 30 min High

IntradayMoney.in
2B/3B
Reversal
2B/3B
Reversal
 www.intradaymoney.in
Use daily opening of price action to gauge
intraday momentum
www.dailyniftytips.in
only sure shot tips..!

Open Open

1
IntradayMoney.in
2

2 1
 www.intradaymoney.in

www.dailyniftytips.in
only sure shot tips..!
Reference for Gaps

IntradayMoney.in
 www.intradaymoney.in
Stops
M-Pattern Initial Stop
Fibonacci
Retracements (1R)
www.dailyniftytips.in
A
only sure shot tips..!
C
2
1

Gap
3

B
IntradayMoney.in
Flags Preliminary
target

Unless there is adequate reward remaining in the trade with the gap
– skip the trade
 www.intradaymoney.in
Monday Tuesday

www.dailyniftytips.in
only sure
Highshot tips..!

5 min High

5 min Reversal

Gap
IntradayMoney.in
Pre-Market

Gap
Late Day
Breakdown Fill

Low
 www.intradaymoney.in
Monday Tuesday

www.dailyniftytips.in
only sure shot tips..!

5 min High

High
IntradayMoney.in
Pre-Market

Gap & Gap Fill

Late Day Rally