Traders Laboratory - View Single Post - Gap Fills Act as Pivot
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Old 08-25-2006, 11:28 PM
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This member is the original thread starter. Gap Fills Act as Pivot

When playing gaps it is always important to scale out at half a gap fill and at the actual gap fill. These levels will usually act as a key pivot for price reversal. For example, let's say a stock closes at $59 and opens down the next morning at $54. If you decide to fade the gap, a good target will be $56.50 for half position and the rest at $59.

Learn more about gaps here.

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