A Gap is the difference between yesterday's close and today's open. It represents the daily trading volume and ignores the overnight volume. In the course you will learn to identify and differentiate between Market Maker and Retail Gaps. You will also learn specific strategies for trading these setups as well as price action and volume based strategies.
Throughout the course you will see why we prefer to trade in a systematic manner rather than by intuition, or by the seat of your pants.
Intuition is the ability to understand something without the need for conscious reasoning. Many Traders and Investors want to know when to get in and when to get out of positions. Some use classical indicators, some use more advanced methods, others rely on intuition. Regardless of which system you use we can all agree that flying by the seat of your pants is no way to manage an account.
Trading by gut feeling is simply feeding of the ego, this is what most discretionary traders are doing. They want to feel as if they posses some special knowledge, or connection with the markets that allows them to be on the right side of a trade. Some may get lucky and have sustained luck just long enough to fool themselves. However it is not a stable and long term consistent method to growing an account. No trader is emotionaly stable 100% of the time, we may not be running at optimal capacity every day and it only takes one day to destroy a winning streak. Therefore in order to preserve capital one must focus their efforts on systematizing the trading signals and methods used to manage those open orders.
In this course you will receive detailed instructions on exactly how to do just that and you'll be able to have a systematic method for entering trades on any market.
This course covers gap trading strategies specifically designed for Futures Traders. You will be able distinguish between a Market Maker Gap and a Retail Gap. You will also learn why they work and practice identifying them for homework on your own charts.
In this Module we cover the basics of Gap Strategies including why they work and the human psychology behind them. We will begin covering Market Maker Gaps.
In this Module we will cover the Retail Gap trading strategy.
In this Module we will cover Price Action strategies for implementing the gap plays.
I hope you enjoyed the course. Please be sure to go onto your charts and find examples. Next you will find examples in real time and track them as they develop on the time frame of your choice. You may do this on Daily and Weekly charts as your experience and account grows behind intraday timeframes.
Bruce Levy is an independent Futures Trader. He is currently a Level 1 CMT with the Market Technicians Association and subscribes to the recognized methods of Classical Technical Analysis. He specializes in adapting directional outright trading systems to ever changing market environments. The strategy's vetting process involves identifying tradeable patterns through keen market observation, once patterns are discovered they are mechanized for further analysis. Those that meet rigorous criteria are then automated into an algorithm and quantified over a robust data set prior to use in the traderoom.
Bruce shares his extensive work through the FuturesTradeRoom screenshare, his Automated Day Trading Programs are streamed on a 24/6 basis. In addition, the system involves no human intervention whatsoever and the trades are executed on the chart trader for all to see. He also writes a Weekly Futures Market Update Newsletter which focuses on Daily and Weekly chart formations. His analysis includes a unique blend of Volume Profile, Price Action and Classical Technical Analysis.