How to trade in gap up market?

1)      Set up a 2-minute Chart of the Nifty futures
2)      The time frame for this trade is from 9:15 AM  to 3.15 PM
3)      Trade same as “filling the gap”. ie trade towards last days close
4)      You trade in the direction to fill the gap
5)      If the open on the Nifty  today is lower than yesterday’s close, then we go long (buy) and if open above yesterday’s close then we go short (sell short).
6)      The gap on the Nifty  must be a minimum of 15 points and no more than 35 points
7)     Enter with a market order at the market open
8)      Use a stop-loss of equal the size of the gap or, if you prefer, twice the gap size ,the reason why a 1:1 or an inverse risk-reward is used here is because this is a high probability strategy
9)      The target is yesterday’s close
10) If the gap does not fill by just before  the close, then exit the market for either a small gain or loss. If your stop gets hit I do not suggest re-entering the market

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