Javascript Disabled Detected

You currently have javascript disabled. Several functions may not work. Please re-enable javascript to access full functionality.

Nasdaq Opening Gap Study

Started by borland , Oct 31 2008 11:14 AM

Please log in to reply

5 replies to this topic

#1 borland

Member

Traders-Talk User
276 posts

Posted 31 October 2008 - 11:14 AM

In case you didn't notice, opening gaps have been frequent. Makes swing trading difficult with tight stops. Looks like now is only safe for day trading.

I made some charts on the Nasdaq Composite that show the frequency of opening gaps, including custom indicator for opening gaps greater than 1%, 2%, and 3 percent, and the CBOE Nasdaq Volitility index.

First charts is a weekly, showing the Monday's opening gaps, followed by daily's the most recent to later time periods. Notice how infrequent the gaps were during the bull market period.

Posted Image

Back to top

#2 traderpaul

Member

Traders-Talk User
6,034 posts

Posted 31 October 2008 - 11:36 AM

Can you make those up gaps green? Thanks

"Inflation is taking place now. Prices may not appear to be rising because they are making packaging smaller. "— Rickoshay

Back to top

#3 borland

Member

Traders-Talk User
276 posts

Posted 31 October 2008 - 11:53 AM

Can you make those up gaps green? Thanks

That can be done, Green for up, Red for down opening gaps. I'll post some over the weekend.

I did look at that, but saw no trend. There could be an directional indicator that warns of impending gap.

Back to top

#4 milbank

Member

TT Patron+
4,714 posts

Posted 31 October 2008 - 12:36 PM

That's why I wait out the first quarter to three-quarters hour. I prefer to yet the yahoo "traders" do their thing and then take their waiter's tips. :lol:

"The power of accurate observation is commonly called cynicism by those who have not got it."
--George Bernard Shaw

"None are so hopelessly enslaved as those who falsely believe they are free."
--Johann Wolfgang von Goethe

Back to top

#5 Drano

Member

Traders-Talk User
481 posts

Posted 31 October 2008 - 12:36 PM

Thanks. Nice work.

Back to top

#6 diogenes227

Member

TT Patron+
5,120 posts

Posted 31 October 2008 - 02:52 PM

Yes. Interesting stuff. Thanks. Will look forward to weekend chart. Best to you.

"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."

Back to top

Back to Fearless Forecasters

Nasdaq Opening Gap Study

#1 borland

#2 traderpaul

#3 borland

#4 milbank

#5 Drano

#6 diogenes227

Sign In