One of the more common questions we receive about “Gap Zones” is how the historical results compare among the various US indices.
Note: The zones are based upon the standard nomenclature as defined on the Gap Zone Map at http://www.masterthegap.com/public/106.cfm
1. Enter in the opposite direction of the opening gap (i.e. fade) at the open of the New York Stock Exchange (9:30:00 am EST)
3. Close the position at the end of the day (4:15 pm EST) if the gap has not filled. This is not a recommended strategy – always use stops!
The above results are based upon all “tradable” gaps with the following minimum size: ES: 1 pt, YM: 10 pts, NQ: 2.5 pts, TF: .5 pts, going back at least 7 years until 2002.