These are just a few instances how we can play the gaps. The charts below are self explanatory. These are not exactly how the gaps would play themselves out, but would give you an idea, if such a situation occurs then these might be the possibilities. This is in keeping with the theory of KISS. By the way the conservative trades mentioned in the pictures below are nothing but the Dow Theory in action!!!!
First The Gap Ups;
Now The Gap
"If you are aware of your weaknesses and are constantly learning, your potential is virtually limitless." Jay Sidhu