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Advanced Gap

Trading Tactics

IntradayMoney.in

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= Transitions

Pre-Market

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Gapping Up

Opening

Gapping

Flat

Down

Market Cycle

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Where are we ?

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Transition Among Phases

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3
1

3
A

B
Flags

Breakdown
Patterns

Flags

IntradayMoney.in
3

A
2

3
1

Breakout
Patterns

3
1

Mini Market Cycle


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Trade
Execution areas
only sure shot tips..!

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Price
Action

3
1

4
Breakout

IntradayMoney.in

4
ENTRY

Higher highs and higher


lows provide evidence of
uptrend

Major Up Trend
Higher Highs
Higher Lows

C
A
Flags

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Pre-Market
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Gapping Up

Once
Markets
open

Opening

Gapping

Flat

Down

Continues

Continues

Continues

Higher

Higher

Higher

Sideways

Sideways

Sideways

Breakouts

Fills the Gap


Up

Fills the Gap


Up

Fills the Gap


Up

Rallies or
Pullbacks

Rallies or
Pullbacks

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Higher
Price
Action

Opening Ranges
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Ideal trading
situation
Entry

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ENTRY

LONG Entry
Up trend
Higher Highs & Higher Lows

Stop loss

Bar-by-Bar Analysis

0
Pre Market Session
Extremely
Aggressive

1
Morning Session
Aggressive

Breakout/Breakdown
Prior Day Highs & Lows

Strategies
(i.e., Bull/Bear
Traps)

Higher Highs
Lower Lows

Higher Highs
Lower Lows

2
Mid-Day Session
Moderate

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3
Afternoon Session
Diligent

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Friday-Monday
only sure shot tips..! Daily Swing

Higher Highs
Lower Lows

Higher Highs
Lower Lows

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2-Bar Reversals
3-Bar Reversals

Opening Range
Breakouts

Opening Range
Breakouts

Opening Range
Breakouts

2-Bar Reversals
3-Bar Reversals

2-Bar Reversals
3-Bar Reversals

2-Bar Reversals
3-Bar Reversals

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2
1

1
2

Up Trend
1

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Up Trend
breakdown

Breakout

Breakdown

Place stops above the previous swing pivot high or above


the previous entry setup

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3
1

2
1

3
1

Up Trend

2
3

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Gap
Up Trend
breakdown

Gap
Breakout

Wait for confirmation of price action

Gap
Breakdown

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Down Trend
breakout
Down Trend

Breakout

Breakdown

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3

1
2

Place stops under the previous swing pivot low or under the
previous entry setup

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only sure shot tips..! Gap
Down Trend
breakout

Gap
Breakout

Gap
Breakdown

Down Trend

IntradayMoney.in
3

2
1

2
3

Wait for confirmation of price action

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Transition Among
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Phases

only sure shot tips..!

T2-3

Trade #2

Trade #3

Profit

Lose

Lose

2R

1R

1R

T3-4

Transition from
Phase 2 to 3

Down Trend
Breakout

Trade # 1

Transition from
Phase 3 to 4

IntradayMoney.in
Potential gaps in W
Patterns & Variations

T1-2

T4-1
Transition from
Phase 4 to 1

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Transition Among
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Phases

only sure shot tips..!

Up Trend
breakdown
T2-3

Trade # 1

Trade #2

Trade #3

Profit

Lose

Lose

2R

1R

1R

T3-4

Transition from
Phase 2 to 3

Potential gaps in
M Pattern & Variations

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Intraday

T1-2
Transition from
Phase 1 to 2

T4-1
Transition from
Phase 4 to 1

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1.

Identify gap and whether it violates the conditions for defining trending price

action
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2. only
Use OR
opening
range strategies to anticipate the setups
sure
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)

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only sure shot tips..!

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Price
Action

Ideal trading
situation

4
4

Natural pullbacks

IntradayMoney.in

4
ENTRY

LONG Entry
Up trend
Higher Highs & Higher Lows

in price action

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only sure shot tips..!

IntradayMoney.in
Are the e-mini futures trending or trading sideways
(i.e., consolidating, range-bound or congestion?

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Higher
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Timeframe
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Price
Action

Price action from prior day close


Gap Up

Flat Open

How much?

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Gap Down

Phase 2
Up trend
Higher Highs & Higher Lows

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Higher
Timeframe

Price action from prior day close

www.dailyniftytips.in Gap Up
only sure shot tips..!
How much of a gap?

Gap

2. Bullish Rally
Flat Open

Prior Day
Close

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Gap Down

Phase
2

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Higher
Timeframe

Price action from prior day close

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only sure shot tips..!
Prior Day
Close

2. Bullish Rally

Flat Open

Gap

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How much of a gap?

Gap Down

Phase
2

Today

Previous Day
Close(s)

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Scenario #1
only sure shot tips..!

Scenario #2

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Pre-Market

IntradayMoney.in

Scenario #3
9:30 EST
Market Opens

~10:30 EST

~2:30 EST

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Price
Action

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only sure shot tips..!

Ideal trading
situation
Higher

IntradayMoney.in
Opening Ranges

ENTRY

LONG Entry
Up trend
Higher Highs & Higher Lows

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2B/3B Reversal &


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crosses back into OR

Intraday

only sure shot tips..!

30 min High

30 min High

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2B/3B
Reversal

2B/3B
Reversal

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Use daily opening of price action to gauge


intraday momentum
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Open

Open

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2

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Reference for Gaps

IntradayMoney.in

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Stops
M-Pattern

Initial Stop

Fibonacci
Retracements
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(1R)

only sure shot tips..!

C
2
1

Gap
3

Flags

IntradayMoney.in
Preliminary
target

Unless there is adequate reward remaining in the trade with the gap
skip the trade

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Monday

Tuesday

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only sure
Highshot tips..!
5 min High
5 min Reversal

IntradayMoney.in

Pre-Market
Gap

Late Day
Breakdown

Low

Gap
Fill

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Monday

Tuesday

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only sure shot tips..!
5 min High

High

IntradayMoney.in

Pre-Market

Gap & Gap Fill


Late Day Rally