Idea or Myth: Gap in Stock Index Futures close on the same intraday.
After comming down for several days a more than 3% gap is formed. At this point, it cannot be determined if this is an exhaustion gap (will move up) or a continuation gap (will move down). It is good idea to use entry filters like avage daily volume above 250.000 and price above 20. Stop is 20% below entry price, looking for exhaustion gaps.
For intra day gap trading: If after open tha price reaches back to its open price. Buy. Stop is placed at open price.