medium · Volume Profile Analysis auction-market-theory

During a New York open, the S&P 500 futures (ES) gap $0.85 ATR higher following a positive earnings release. The first 30 minutes show an 'Open Auction' inside the gap range.

What is the gap-play strategy?

  1. Long at market immediately to capture the 'Open Drive' momentum sequence.
  2. Wait for a 'V-reversal' to completely fill the gap before entering.
  3. Do not fade the gap; wait for a breakout in the direction of the trend.
  4. Short the gap fade aggressively, targeting the prior-session settlement close.

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