Scott Pulcini Trader – GAP-VWAP Fail Course | 388 MB
A very frequent and with highly favorable risk reward play that finds additional edge by understaning order flow.
If you are an active stock day trader you definitely don’t want to miss this!
The term “GAP-VWAP Fail” typically refers to a trading strategy or setup used by traders in the stock market. Here’s a general explanation of the concept:
It represents a price level where there is a discontinuity in the trading activity.
Traders may consider this as a potential trading opportunity by anticipating a reversal or retracement back towards the VWAP level.
Certainly! Here are a few more details about the GAP-VWAP Fail strategy:
- Reversal Trading: The GAP-VWAP Fail strategy is often employed as a reversal trading strategy. Traders look for instances where a stock gaps up or gaps down at the open but fails to maintain its direction and returns towards the VWAP level.
- Confirmation Indicators: Traders may use additional technical indicators or price patterns to confirm potential entry or exit points when trading the GAP-VWAP Fail strategy. These indicators can include support and resistance levels, trendlines, moving averages, or other oscillators or momentum indicators.
- Timeframes: Traders may apply the GAP-VWAP Fail strategy on various timeframes, ranging from intraday trading to swing trading.
- Risk Management: Like any trading strategy, risk management is crucial when trading the setup. Traders may set stop-loss orders to limit potential losses and determine appropriate position sizes based on their risk tolerance.
- Backtesting and Analysis: Before implementing the strategy, it’s important for traders to backtest the strategy on historical data and analyze its performance. This helps in understanding the strategy’s strengths, weaknesses, and potential profitability in different market conditions.
