Tape Reading Scalp Trading – The Opening Gap Trade

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Summer trading is here and it’s time to respect the reduced volume and pick the opportunites carefully.

The market was set to gap lower and so I put together a plan of action for the open.

Look to trade the short side in the direction of the gap, either when:

1) The price tries to push higher and then stalls – Short the subsequent momentum lower

2) Tape reading the opening few moments indicates that sellers are immediately in charge – Short into that weakness, being cautious of a snap back

Build a position up to 20 contracts, look for a 50-70 point drive lower.

It didn’t work out as I planned, check out the video to see what actually happened and how I managed the trade.

 

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