Gap Strategy
1) Scan for all gappers more 4%
2) Hunt for Catalyst for the gap (earnings, news, PR, etc)
3) Mark out pre-market highs and high of any pre-market flags
4) Prepare order to buy the pre-market highs once the market opens
5) At 9:30am as soon as the bell rights buy the high of the first 1min candle (1min opening range breakout) with a stop at the low of that candle or buy the Pre-Market highs.
The importance of Float Always look for low float stocks.
These will have home run potential written all over them. A stock that has a 10mil share float and trades 1mil share pre-market has already traded 10% of the float. There is an extremely good chance the entire float will be traded during the day once the market is open. These are the type of stocks that can run 50-100% in one day. When we have the right catalyst, float, and retail trader interest, it’s the perfect storm for a big runner.
1) Scan for all gappers more 4%
2) Hunt for Catalyst for the gap (earnings, news, PR, etc)
3) Mark out pre-market highs and high of any pre-market flags
4) Prepare order to buy the pre-market highs once the market opens
5) At 9:30am as soon as the bell rights buy the high of the first 1min candle (1min opening range breakout) with a stop at the low of that candle or buy the Pre-Market highs.
The importance of Float Always look for low float stocks.
These will have home run potential written all over them. A stock that has a 10mil share float and trades 1mil share pre-market has already traded 10% of the float. There is an extremely good chance the entire float will be traded during the day once the market is open. These are the type of stocks that can run 50-100% in one day. When we have the right catalyst, float, and retail trader interest, it’s the perfect storm for a big runner.
