August 03, 2015

018: Scott Andrews 'The Gap Guy' talks all about Gaps, why they work, how to pick the best Gaps and avoid the worst, Gap Zones and setting stops and targets. PLUS we discuss a concept called 'Ensemble Systems' that may just change the way you view trading

50 minutes

Scott Andrews 'The Gap Guy' shares his expertise in gaps, why they work, what factors to take into account when trading gaps and what to avoid. We also discuss gap zones, when to fade and when to follow and calculating stops and targets.

PLUS, for those that aren't into Gap trading, we cover some important concepts that can impact all styles of trading, include one concept called 'Ensemble Systems' which may just change the way you look at trading strategies.

Topics discussed

Why it’s important to trade a style that matches your own strengths rather than follow someone else
Why gap trading works
Markets where gaps work best and those that don't
The best type of stocks to trades gaps and the stocks to avoid
The benefits of trading gaps in indices vs stocks
The 3 market conditions to look at when analysing a gap
How seasonality impacts gap trading
Signs of gaps to avoid
Using ATR to determine the probability of gap size closing
Gap zones and how the location of the gap can provide useful information
The worst performing gap zone
The psychology of certain gap zones and why some work better than others
When to fade the gap and when to follow it
Calculating stop and profit levels based on gap characteristics and market conditions
How to determine if a target should be a full gap close, partial gap close or an extended target past gap close
The impact of QE on gaps
How to combine systems into Ensemble Systems for an interesting view on trading strategies

Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.

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By Andrew Swanscott chats with professional traders Larry Williams, Ernest Cha

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260260 ratings

August 03, 2015

018: Scott Andrews 'The Gap Guy' talks all about Gaps, why they work, how to pick the best Gaps and avoid the worst, Gap Zones and setting stops and targets. PLUS we discuss a concept called 'Ensemble Systems' that may just change the way you view trading

50 minutes

Topics discussed

Why it’s important to trade a style that matches your own strengths rather than follow someone else
Why gap trading works
Markets where gaps work best and those that don't
The best type of stocks to trades gaps and the stocks to avoid
The benefits of trading gaps in indices vs stocks
The 3 market conditions to look at when analysing a gap
How seasonality impacts gap trading
Signs of gaps to avoid
Using ATR to determine the probability of gap size closing
Gap zones and how the location of the gap can provide useful information
The worst performing gap zone
The psychology of certain gap zones and why some work better than others
When to fade the gap and when to follow it
Calculating stop and profit levels based on gap characteristics and market conditions
How to determine if a target should be a full gap close, partial gap close or an extended target past gap close
The impact of QE on gaps
How to combine systems into Ensemble Systems for an interesting view on trading strategies