How To Day Trade Exhaustion Gaps

One of my favorite day trading setups is the Exhaustion gap.  One of the things that we are taught is when a stock gaps up that is a powerful thing and we want to long that stock.  But when a stock is extended that last gap is actually a last GASP! It is the suckers gap meant to bring in a fresh set of buyers that get smacked. When a stock is a full blown rubber band extended setup that last gap is your sure fire sign that you have a great exhaustion gap short setup.  We were day trading this yesterday for some great gains and then did it again today as the stock closed around 11 dollars. Our first short was at 13 yesterday.  If you want to learn how to day trade it is important to have a toolbox of goto setups that you can call your own that you can use every to trade.  Whether you day trade or swing trade it is important to build this toolbox  so that you can make profits each day.

If you want to learn how to trade stocks we have a 60 day bootcamp starting September 15th.  This is the end all of everything I know from A to Z on how to trade stocks.  We have had some great students come out of this program check out some of their stories and their own tips on how to day trade stocks in our Path to Profitability series.   Below this will be the trade review on Exhaustion gaps.  Enjoy and feel free to email me anytime on our 60 day bootcamp




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