Stock gap scanner to scan for a list of gap up stocks and gap down stocks today. Stocks gapping up generates a strong signal while gap down stocks signal weakness. Gap up stocks are worth watching because the strong trend may continue in the foreseeable future.
Gap Up Stocks
Find gap up and gap down stocks today with our free gap up gap down scanner. Whether you are swing trading or day trading, you may find trade ideas with the gap up stocks screener.
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What does gap up mean in Stock Trading?
Often times when a stock gap up, there are some kind of positive news about the company itself, the industry, or the market in generally.
When a stock gap up at the bottom of an down trend with strong volume, it is possible that a reverse trend is coming. When a stock is trading on the sideways for a period of time,
a gap up stock could mean the stock is finally ready for a breakout and hence worth watching for swing traders.
However, if a stock gap up with low volume, there is high chance it is a false breakout. The stock may go up and then retrace to the previous level or even lower,
so traders must have tight stop loss to manage trading risk.
Gap Up Strategy
One gap up strategy I use is to buy a stock on pull back after it gaped up 10% or more on positive earnings report during earnings session. It works fairly well with Amazon's stock.
What I've learn is that after a stock pop up on earnings beat, there are short term traders who want to unload the shares for a quick profit. As long as the gap is not getting filled,
it is still a strong stock. I would buy this kind of stock and waiting for the stock to bounce. I would try to buy the stock at a price as close to the previous day's closing price as possible.
Sometimes, I have to wait a few days. Often times when the market is strong, the stock will be back at their peaks and even reach new highs in a short period of time.
However, if the stock doesn't move or kept dropping after I bought it, I would sell the stock and take a small loss. My stop loss is placed at little lower at the original price when the stock gaped up.
Also, if a stock doesn't pull back after it gaped up, I would pass this stock and move on to the next one. Do not chase a stock and enter a trade at a non-optimal price, because that's how traders lose money
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Gap up gap down scanner
To learn how to find gap up stocks with the gap scanner and how to trade breakout stocks, read Breakout Trading Strategies.
You can also find this today's gap up stocks list with our free mobile apps.
Gap Up Penny Stocks
To find gap up penny stocks, you can use our penny stock scanner. The penny stocks screener scans for stocks under $5 exclusively with volume filter.
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