Gap vs Intraday Trading

in LeoFinance4 years ago (edited)

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Source tweet:
shanghai's article: https://leofinance.io/hive-167922/@shanghaipreneur/beware-trad-markets-move-against-you-while-you-sleep

What's the best strategy? Trading for gaps? Reversion to the mean? Extend the trend?

It looks like 2006 - 2017, reversion to the mean was the play.
2017 - now, it's been extend the trend.

Crazy times.

After I turned off the video I zoomed in on 2006 - 2020 and you can see the result here:

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That is insane that buying the open and selling the close equates to break-even.

Yep, it's pretty crazy. There's no incentive to hold during the day. So the real question becomes, which direction is the gap?

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