Thread by @arunjagtap007

Sharing a GAPUP and GAPDOWN Strategy, which I've been Trading and back-testing for more than 6 months.
It's well known but I've made some modifications for simplicity.
I Hope it adds some value n insight to your trading.

chartink.com/screener/gap-u…

This Chartink Scanner will Scan stocks whose 1st 5MIN Candle opened above or below yesterday's high.

In Friday's (27th Sept 2019) case, there is 1 Gapup (NMDC), And 4 Gapdowns
(PEL, TATAMOTORS, YESBANK, CADILAHC.)

Let's go through every setup and see how to trade it.
It's a 5min candle Chart, And I've added 4EMAs.
The major ones are 9EMA, 15EMA.
We'll use 50 EMA HIGH and 50EMA lOW Only in case there is a decisive trend change.

1) Let's start with Gapdowns.
First one up is PEL

---:Big red Candle with volume at opening and Below all EMAs.

---:The entry will be After breaking the 1st candle low and SL will be Current 9EMA.

So Short Entry for PEL would be around 1790 with SL of
around 1820.
The Exit is when a candle is closed decisively above 9EMA. In this case, it is around 1763 range.

2) CADILAHC
Entry will be after breaking 1st candle low around 243 level
With SL at 245.
EXIT will be after Close above 9EMA at 240 levels.

3) YESBANK
Short Not triggered.

4) TATAMOTORS

There is only one GAPUP.
NMDC...

One important thing here. I only Buy Gapups and Short Gapdowns after the confirmation.
9EMA and 15 EMA helps to follow most of the momentum. That's why After decisive close of candle at 9EMA, we should exit and book the Profits.

Do share it ,if u find it useful..
@Abhishekkar_
@ArjunB9591
@Singh7575 @Shreesh_Raje @DarkRyd3r @rachitpjain
@SunderjiJB @yogeeswarpal

Disclaimer :::: I'm just a trader, Not a SEBI ADVISOR or anything like that.
Trade at ur own risk.

Why precisely 9EMA...??
Well 7-8 gets too closer And may hit SL while buffer. above 10 it gets wider. 15 is for retest of current trend.
If we do get carried away and don't close it at 9EMA. 15 is the second warning.

Scanner results will be available only after 9:20 AM, as it waits for first 5Min candle to be completed.
If u want Gap setups at the 9:15AM u'll have to check NSE website for Top gainers and Loosers for that.

Created Telegram channel for Updates and More info about Gaps.

t.me/TradingGapsWit…

Search for "TradingGapsWithAJ" in telegram search box if link doesn't work.

Use 1st Candle high or low based on type of trade as a SL if 9EMA is too big for SL. Happens with big Gaps.

If anyone had followed This strategy today, Major Gapdowns and perfect setups in IBULHSGFIN, JINDALSTEL, CIPLA, n so on.
I'm sure they have made killing today...

Monday 30 Sept.
Charts are self explanatory.
Some Excellent GAPDOWN Setups.
DM or telegram on 9595204111 for any queries. I'll try my best to resolve them.

Biggest one was IBULHSGFIN.
I couldn't catch whole big move. Just kept scalping on pullbacks.