I’m consistently impressed by the innovative strategies developed by the team at Monument Traders Alliance.
Today’s guest article is no exception…
Bryan Bottarelli is showing readers the power of his “gift gap” stock chart pattern.
It’s a surprisingly straightforward trading approach that has undergone rigorous backtesting. I have no doubt that the results will leave you absolutely astounded.
He will also be showing a live demo of the “gift gap” on Wednesday, October 2, at 2 p.m. ET.
– Nicole Labra, Senior Managing Editor
I have a new method of trading that’s blowing the doors off our trading results.
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It’s called a “Gift Gap.”
And it zeroes in on two distinct market inefficiencies…
Inefficiency #1: Wall Street’s habit of overreacting. And when a stock drops significantly, it creates a “gap” in the chart.
Inefficiency #2: Wall Street’s habit of backfilling those overreactions. Meaning there’s a high probability that the gap will eventually get filled.
Then we wait for our proprietary 10% trigger – when the stock has filled 10% of the gap – to get in.
This systematic approach gives us a precise entry point, eliminating guesswork.
Risk management? We’ve got that covered too. Our strategy includes clear exit points, both for taking profits and cutting losses.
Best of all…
The Gift Gap works on both up and down gaps, giving you tremendous flexibility in various market conditions.
As you’ll see, this is a complete trading system…
Combining a proven market inefficiency, precise entry and exit points, and adaptability to market conditions – is what gives The Gift Gap strategy its powerful edge.
Indeed, my team and I have put The Gift Gap strategy through rigorous back testing, and the results are nothing short of stunning…
- Looking at historical market data from over a 10-year period, we analyzed 3,735 gap down events.
- When targeting a 25% gap fill as our exit, our win rate was a staggering 97.11%.
- That means out of those 3,735 trades, 3,627 were winners.
- The average winning trade lasted just 4 days.
- Even more remarkably, 80% of these winning trades hit our target within the first two days.
Here’s a great example in Innovative Industrial Properties (NYSE: IIPR) from last January.
The stock dropped $18.79, or 16.95%, after its quarterly report didn’t sit well with Wall Street. This created a massive gap from $110 down to $97.50.
I covered this IIPR “Gift Gap” right here on Trade of the Day when this strong trading opportunity presented itself.
What happened from here?
IIPR did exactly what our data tells us is likely to happen…
After an official 10% retracement into the gap – which we had to be patient to see – IIPR continued to surge higher and fill the gap.
And as you can see, it not only filled the original gap… the stock now trades well above it.
When you’re trading options, Gift Gap moves like this can help send those call options into the stratosphere.
In other words…
When used properly, The Gift Gap strategy offers a powerful edge in the market.
But to truly capitalize on this edge, you need a solid understanding and disciplined approach.
That’s exactly why I’m going live – for free – to reveal the specifics of this unique methodology.
If you’re ready to master this strategy, join me for a FREE live training on Wednesday, October 2, at 2 p.m. ET.
Do not miss this unique training session.
Once you master The Gift Gap method, you might never trade the same way again.
Lock in your spot here – and I’ll see you at the training.
