how to interpret trend from gap opening

attempted gap filling in the first 45 minutes or so
- trend likely to continue

no attempt towards gap filling in the first 45 minutes or so
- (if at the advanced stage of an existing trend) = trend about to reverse
- (if opposite to the existing trend) = new trend has started

who sold when everyone bought in the morning?

today's gap up (courtesy global factors)

resulted in the early morning scenario

where a lot of people were lined up to buy.

then who was selling?

obviously, there must be somebody willing to sell a lot for this mass buying.

it is prudent to assume that those who were long won't sell especially when their stand gets vindicated due to gap up!

so who's selling?

operators.

but.....but....

at a premium.

they always do this. they are the happy sellers when people are mad to buy and happy buyers when people are dying to sell!

so, this morning too, the operators shorted what people bought.

operators did that to make the short term money. they were expected to buy back those short positions at lower price.

if they expect higher levels, they would have been a decent dip after gap opening, giving chance to operators to book intraday profit and then start accumulating for higher levels.

so far the operators have not bought back, seemingly.

so when are they planning to?

manipulations at gap openings

when the overnight conditions are bullish
everyone expects gap up opening.
the operators sense these prevailing sentiments
and oblige
......by jacking up the price further!!!
vice-cersa for down side.
a gap opening is always overstretched.
thereafter, they start the distribution
or play games to further extend the accumulation.

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how fast the gap gets filled
indicates what games the operators are upto-

1. filling of gap up during bull phase or gap down during bear phase
= means operators are not supporting buying after gulping down profit at the gap opening
to will start accumulating more and more at more attractive price without making noise.

2. filling of gap up during bear phase or gap down during bull phase
= means operators are distributing after encashing the temporary euphoria.

3. sustaining of gap up during bull phase and gap down during bear phase
= means operators are scaring the retail traders, enticing them to take reversal positions and thus accumulating before resuming the trend.

4. sustaining of gap down during bull phase and sustaining of gap up during bear phase
= means operators are trapping the retail traders by misleading them that the reaspective phase is over and thus accumulating more at cheap price by extending the euphoria.

trading @ market opening

nse opens for retail traders at 9.15am

there is almost always a small stampede in one direction after opening.

this mad rush remains for 15 odd minutes (rarely for 30minutes).

market almost inevitably

retreats after this

full or partial.

if someone takes reverse position at this first turn

he is likely to get

a quick profitable ride

possibly all the way back to the opening tick.

if it doesn't go back all the way

then profit can be booked midway.

if it turns back after retreating somewhat

entry point should be used as stop loss.

if it crosses stop loss

reverse position can be taken

albeit very cautiously and with strict stop loss.

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caution: since this is like a 100meter sprint

attempt this with high speed online demat connection only

with 110% attention

and after practice for a few days

with small lot.