✅ 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