Gap Play

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Definition of 'Gap Play'

The Gap Play is the trade that is taken at the Open with a target of the previous session's Close. As such, the Gap Play can be a short or long trade.

Yesterday's Raw Gap Play: Called raw here because no stops are used and you enter at the Open and exit at the gap fill which is the previous day's Close.
GAP CLOSED: True if the previous session's close was touched.
PROFIT/LOSS: Number of points gained/lost if the gap was faded from Open to Gap Fill or Close.

Monthly Cumulative Raw Gap Play: Statistics for month to date. Assumes that you don't use stops and close the trade at the EOD closing price if there is no gap fill. If you are fading the gaps as a strategy then this would be a good benchmark to beat by using stops and improving on the average entry price. Trading without stops is dangerous and not recommended.
PROFIT/LOSS: Number of points gained/lost to date this month using this strategy.
Number of Trades: Excludes days where the Open = Previous Close.
P/L per Trade: Gross average points per trade for the month to date. Commissions not included.

For more information on fading the opening gap read the Gap Fade Study.


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