Here’s Why You Should Pay Attention To Gap Zones

We see so often that
stocks and indices find their support levels at the lower boundary of gap zones
.
It was what YM (Mini-Dow) did this morning.

11:05:41 (From TradersWire)



Action

Symbol

Order Type

Setup

Stop

Current Price

Buy

YM

Market


Long Gap Pullback

10599

10612

As you can see below, after failing
to take out 10640, YM began to approach the lower boundary of a gap zone. Of
course, there was no guarantee that the boundary would hold. But, after
confirming a breakout above a hammer, we decided to buy YM at the market.
Notice, at the same time, Advance/Decline was starting to bounce, too.

11:38:02

Follow up on YM (Pt.5)

It hit our raised stop. We locked in 38 points.

Have a nice afternoon session!

T.Kamada

Feel free to mail me your questions.


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