The Dangers Of Fading Gaps

  • February 20, 2002
  • Jack D. Schwager


Never fade the first gap of a price move! For example, if you are waiting
to enter a trade on a correction, and the correction is then formed on a price
gap, don’t enter the trade.

—Jack
Schwager, from

Schwager on Futures: Technical Analysis (1996, John
Wiley & Sons, New York).