"I haven't found a more consistent winning strategy than gift gaps." Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Remember that gift gap watchlist play I wrote to you about last Tuesday morning? It was on Zenas BioPharma (ZBIO). When this setup came across my scanner, I knew it was too good to ignore. A massive gap fill… A classic Wall Street overreaction… This what I play for in The War Room. So with potential for ZBIO to fill back up, I got positioned for a trade early that morning. The intent of the trade was to ride the gap higher. And as you'll see in the chart below, that's exactly what I did. Check out the chart below and you'll see the gap fill. Notice the initial gap, highlighted with "gift gap." Then the uptrend afterwards, plus when I got in. As the gap continued to fill back up, I rang the register for an 8% winner in less than 24 hours. This is why I love trading gift gaps. Not only can you profit from them, but they're also one of the most consistent winning strategies you'll find anywhere. Look at these stats… - According to historical market data from over a 10-year period, we analyzed 3,735 gap down events.
- When targeting a 25% gap fill as our exit, the win rate was a staggering 97.11%.
- That means out of those 3,735 trades, 3,627 were winners.
- The average winning trade lasted just 4 days.
- Even more remarkably, 80% of these winning trades hit our target within the first two days.
I don't think you can find a more consistent strategy than that. To be clear, we don't just buy any stock that gaps down. We wait for our proprietary 10% trigger – when the stock has filled 10% of the gap. This gives us a clear entry point, and eliminates any guesswork. And if you want to see how this scanner works in real time, I have a special way for you to do that today. |
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