How I Trade Big “Gaps” in the Market

Hey team, There’s nothing I love more as a trader than a good gap. A gap is an area where the price of a stock moves sharply up or down from the previous close. Gaps occur because of fundamental or technical factors that are influencing the market. They are typically found around periods of news or earnings that drive the price away from where it closed the day prior. For example, if a company’s earnings are much higher than expected, the company’s stock may gap up the next day. SFIX gapped up the following day after a positive earnings release this week. For day traders, a gap is a highly anticipated momentum signal. Every day, these traders have the same focus… find the biggest gappers, search for a catalyst, add to a chart in their grid, and execute trades when momentum picks up. Of course, I mainly do swing trading across my trading services, so I always look forward to that overnight gap up. Here are two categories of gaps that we can trade. - Gap Continuation - Gap Fading Today, I want to talk about 2 continuation gaps we can trade… tomorrow, I’ll share 2 fading gaps. [Continue reading...]( Ben Sturgill DailyProfitMachine.com RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 [Click Here to stop receiving emails from ben@dailyprofitmachine.com]( [Unsubscribe from all RagingBull emails]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. AnyRagingBull Service offered is for educational and informational purposes only and should NOT beconstrued as a securities-related offer or solicitation, or be relied upon as personalizedinvestment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment. RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor(IA), or IA representative with the U.S. Securities and Exchange Commission, any state securitiesregulatory authority, or any self-regulatory organization. WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services. However, Ragingbull.com, LLC, its owners, and itsemployees may purchase, sell, or hold long or short positions in securities of the companies mentioned inthis communication.