[dpaterso]

Totally 'off topic' but some useful (useless) information anyway:

This has NOTHING to do with Parabolic SAR BUT is a 'quick way' to make a few PIP's (not tried yet BUT will probably give it a bash tonight):

This is not a new concept by any means i.e. it is 'detailed' in 'Mastering The Trade' by John F. Carter (which is REALLY another excellent book but I won't bore you with the details because you people don't like reading it would seem) (neither do I if the truth be told UNLESS the reading material is yet another way of making money in this business). The name of the chapter however says it all i.e. 'The Opening Gap: The First and Highest Probability Play of the Day'!!!

I read this a while a go but never REALLY gave it much consideration UNTIL TODAY.

In preparing my daily worksheets for Mr Wilder's trading systems it has FINALLY dawned on me what this 'gap play' is about.

Basically - every day I update my worksheets (I'm building up a 'library' of worksheets for each Index, commodity, precious metal, and pair that I want to trade with Mr Wilders's trading systems BUT it's taking time TO DO IT ON MY OWN) - and every day I capture the open, high, low, and close price of an instrument. NOW - it's just 'hit' me that there IS a 'gap' between the closing price of an instrument (pair) on Friday night and the opening price of the same instrument (pair) on Sunday night!!! THIS IS THE GAP!!! Why this is significant is BECAUSE THE GAP HAS TO BE FILLED!!! SO - the play is this: if the closing price of an instrument (pair) on Friday night is HIGHER than the opening price of the same instrument (pair) on Sunday night THEN YOU KNOW that the 'gap' is going to be filled in the next day or two SO in this instance you would go long just after the open on Sunday night and TP when the gap is filled!!! Conversely - if the closing price of an instrument (pair) on Friday night is LOWER than the opening price of the same instrument (pair) on Sunday night then you would go short and TP when the gap is filled!!! Simple???

Have a look at your charts for the past couple of weeks and compare the opening price on Sunday night with the closing price on Friday night if you don't believe me!!! And - obviously - the bigger the 'gap' the more you're going to make (watch out for the high spread pairs here though)!!!

Now - the plot thickens!!! This was detailed in 'Mastering The Trade' BUT was being applied to stocks and the Indices (not Index futures but the 'proper' indices) BECAUSE these instruments ARE NOT traded 24 hours a day i.e. they open and close at the same time as the NYSE so there COULD be a 'gap play' every day UNLIKE forex pairs where they are traded 24 hours a day BUT I have just discovered ('Analysis-Paralysis') that THERE IS A GAP EVERY SUNDAY NIGHT!!!

See what 'reading' can do for you!!!

Anyway - use it - don't use it - interesting though!!!

Regards,

Dale.