Hi ASF team,
I would like to have a go at shorter term trading in the coming months, can you please let me know if any of you filter gaps for day trading.
My plan is to filter out stocks that have gapped from the previous EOD price, gap up or gap down, either would be suitable.
I would most likely trade the Nasdaq & NYSE but open to suggestions, so long as it gaps i figure it is fair game.
I would look for shares valued at $10.00 to $100.00 with tight spreads and good volume. Looking to trade between the whole dollar sums, taking up to $1.00 per trade in the perfect trade.
Trading 500 - 1000 share lots.
Stops set according to my calculation of what i am willing to loose but they would be tight and any sign of the trade going against me i would be out.
Essentially the idea is to closely monitor the stock after open, especially the first 30 mins to see if it looks likely to close the gap or if it makes no effort to close the gap and continues to fall away. I would be trading which ever way the trend is going.
Keep an eye on the volume, spread and trend and enter the stock either long or short when probability is most favorable.
Anyone use a method similar to this or know where i might be able to read of similar methods.
Obviously i want to make sure my system and methodology is correct before i put real money on the table.
Over to you guys and girls.................JW