CFA Level III Review - Level 3 Weekend Marathon

Let me review this. If at the end of the first hour. of trading the traditional buy gap stop order has not been hit, you will check the current price and the opening price for the day. If the current price is above the open, you will buy at the market. Your initial stop loss will be either a money management stop loss or a stop loss several ticks below the low of the day at the time you are filled.

3. If the current price at the end of the first hour is below the opening price, you will enter a buy stop two ticks above the current high of the day. Furthermore, you may also retain your original buy stop two ticks above the low of the previous day in the event that the market begins to make a very large move in the anticipated direction. Should this occur, you will then be long multiple units capitalizing hopefully on both possible signals.

Delayed Gap Up Sell Signal 1. In the event of a gap higher open, the initial procedure will be the same as the original gap method (GO). You will enter a sell stop two ticks below the high of the previous day. 2. After the first hour of trading, you will check the market. If the current price is below the opening price, you will sell short at the market using either a risk management dollar stop or a stop loss several ticks above the current high of the day. Delayed gap down buy signal actual example.

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