Hubert Senters here.
Let’s walk through a trade that you can trade during earnings which I think is a little bit easier to handle than people that gamble on earnings so we’re going to take this chart for example I’m going to remove Ichimoku really quickly just so I can show you what I’m talking about here, status set off.
So let’s say this is an earnings play. Let’s just say. Because when you use that as a gap and it may or may not be what we’re going to use it. We’re going to say a lot of people right here at the close to $298.90. Placed a bet where there’s been a gap up or gap down. Now, you bet on the gap up, congratulations you made some money.
If you bet on the gap down, that going to sucks for you and it’s going to be painful. So what I’d like to do is let all of this fear and greed and pent up frustration kind of play out just a little bit and then I’d like to come in and pick up the pieces.
So here’s I do I mark the high of the gap up or gap day and down day. And then all I’m looking for is either a trade, either above this area or a close above that area or a trade below this area or close below this area. So in this case scenario, if it was a trade this one would have triggered a short $340.38.
And then I would be trying to go for half a gap fill and then maybe a full gap fill. Now, if we’re using the rule that the market actually has to close below there then I can’t place a trade until it closes below $340.38 or above $367.63.
That makes the swings less violent and usually the price action of the thing will tell you which way it’s going to go based upon the follow up of the next two or three days after the gap.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
