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• Short-Term Profits With Gap Trading by Glaister Welsh

  ARTICLE SYNOPSIS ...Short-Term Profits With Gap Trading by Glaister Welsh Mispriced stocks are often caused by gaps, which you can take advantage of by applying a strategy that generates above-average returns while reducing your risk. Check it out. A convergence trading strategy is based on the theory that when the price of a stock or stock portfolio significantly deviates from its long-term trend, it will return to its original trend sooner or later. Normally, convergence trades tend to move prices toward their long-term equilibrium values and, thereby, stabilize markets. However, some research suggests that i...

AUTHOR: Glaister WelshDATE: NOV 2009SUBJECT: Charting