Gap Plays
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Gaps is a one more good techniques for investment in the Stock market, Majority technical analyst recommend to play gaps, because market tendency to fill up gap within short time period.
Gap Play is a proven Stock trading system so many trader love gap for day trading. It’s little more riskier then other techniques for investing and day trading because usually gap happened due to some strong news. For investing in the Stock market it’s a best choice, only you need to verify with technical indicators.
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Potential Gap plays :
To play gaps you need to identify strong resistance or support zone (point) and Stock market major trend. Once you know trend you can play gaps for day trading. If Stock market trend is down and there is a down side gap, and as soon as it hit support zone (point) you can buy particular Stock because within short time period that come up to fill up gap.
Same way if Stock market trend is down and there is an up gap, in this condition when Stock hit resistance zone (point) you can enter short for Stock trading or day trading in the Stock market.
It's an advisable to avoid gap that are in major trend direction because many time that to fill up its taking long time and if you playing for day trading you can loose your money.
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