Recession-Proof Setups : 21 Proven Stock Market Trading Strategies in a Bear Market by Matthew Giannino

Recession-Proof Setups
LEVE L 1

Gap Fill or Bounce 1

Bearish Setup Explained
For bear markets, traders will look to target gaps lower. A gap in the market 
allows traders to play the filling of the gap or reversals before the gap. The 
criteria for this setup is simple; you just need to identify a gap, and a stock that 
is heading towards it. The goal is for the stock to break the first horizontal 
support line that initiates the gap fill. Once that line is broken, the gap fill can 
happen relatively quickly, and that is where traders can profit.
Why it works
Gaps are formed by the stock being moved during the pre market or after 
market hours. The reason for these movements could be related to earnings, 
news, or some other catalyst. When the market opens the very next day, this 
can produce a gap between the close of the previous day and the open of the 

Recession-Proof Setups : 21 Proven Stock Market Trading Strategies in a Bear Market by Matthew Giannino