Gap & Go Trading Strategy: How to Trade Gappers for Momentum Breakouts

✅ When to Use The Gap & Go Trading Strategy

The Gap & Go Trading strategy applies to stocks gapping up +5% or more in premarket, often following a strong catalyst like earnings, news, or analyst upgrades. Ideal for low float, high momentum stocks.

⚙️ Core Rules

  • Look for pre-market gap ≥5%, ideally with news or earnings catalyst

  • Prefer stocks with low float and increased volume premarket

  • Entry: After first consolidation or break of opening range high

  • Risk: Use VWAP or opening range low as stop

  • Exit: Measured move target or trailing stop on higher lows

🎯 Main Objectives

  • Capture fast momentum continuation within the first 30–90 minutes

  • Aim for quick 10–20% intraday gains

  • Get in early before the move extends

🧠 Mindset

This is an aggressive, fast-paced strategy. You must act quickly and decisively. Be prepared for high volatility, and stick to your plan—don’t chase!

⚠️ Risks

  • False breakouts (especially on no-news gappers)

  • Fast reversals if volume dries up

  • Slippage and wide spreads in low float names

🔗 Where to Use It

Use this strategy in The Next Trading Day under category:
📈 Gapper Up → Gap & Go

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