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| Market professionals use fear to generate profits. Many opening gaps allow large players to benefit their own accounts by fading the crowd. When overall conditions favor strong buying interest, these stomach-churning gaps may actually represent low-risk entry. Learn to interpret this market sentiment correctly and capitalize on misinformed sellers. But first exercise caution and risk management since poorly-timed execution can be very deadly to your equity account. Only an experienced trader should consider long entry into a down gap. Avoid the opening minutes and check the news before entry to evaluate the severity of any shock event. The best opportunities come when no obvious reason drives the selloff. When conditions favor the entry, watch for cross-verification near the 3rd, 5-minute bar and execute on a short pullback in the direction of the gap.
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