26,858
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'''Big Gap Up''' so 80% chance of at least one reversal in the first hour. The bulls want a double bottom or wedge bottom on a pullback to near the EMA. The bears want a double top or wedge top for an early high of the day. When there is Big gap up, odds favor bulls: | '''Big Gap Up''', so 80% chance of at least one reversal in the first hour. The bulls want a double bottom or wedge bottom on a pullback to near the EMA. The bears want a double top or wedge top for an early high of the day. When there is Big gap up, odds favor bulls: | ||
* 85% chance of PB in '''first 2 hours'''. | * 85% chance of PB in '''first 2 hours'''. | ||
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* 60% chance of swing up in 1st hour. | * 60% chance of swing up in 1st hour. | ||
* if instead it is going down, often pulls back 50% in wedge bear channel. | * if instead it is going down, often pulls back 50% in wedge bear channel. | ||
'''However, though the odds favor bulls after BGU, traders should expect following:''' | Worth to mention, '''if the gap UP is overly big''', i.e. a '''huge''' gap, it increases chance of TRO that lasts a couple hours since it might take that long to get near MA. ''Generally, a big gap is a gap that is '''around the half of the daily range''', a huge gap is a gap that is '''bigger''' '''than the daily range'''.'' | ||
'''However, though the odds favor bulls after BGU when there is a big gap up, traders should expect following:''' | |||
* Traders should expect trading range price action on the open and possibly sideways to down and test the moving average<ref>''https://www.brookstradingcourse.com/analysis/emini-strong-globex-session-reversal/''</ref>. For e.g. [[20220309]]. | * Traders should expect trading range price action on the open and possibly sideways to down and test the moving average<ref>''https://www.brookstradingcourse.com/analysis/emini-strong-globex-session-reversal/''</ref>. For e.g. [[20220309]]. |