![]() Many stock screeners allow traders to search for stocks that have gapped 1%, 2%, or even more in price from the previous day’s session. This can be done by looking at a stock’s price chart for any sharp movements up or down. Lastly, you want to look for stocks with a history of gapping. If a stock is in a long-term uptrend, it is more likely to gap up than down. You also want to look for stocks that are in a strong trend. If there is some big news coming out about a company, it may gap up or down when the market opens. High volume usually indicates some buying pressure behind the move and that the stock is likely to continue moving higher. ![]() One way to trade gaps is to identify stocks gapping up is look for stocks with heavy trading volume. One approach to trading gapped stocks is to look for a stock to fill the void in price, known as “filling the gap.” Gap filling is when a stock’s price heads in the direction of the difference between the previous day’s close price and the current open price. This void can happen for several reasons, but usually, it happens because there has been some news event that has caused investors to buy or sell the stock. A stock gap occurs when the current day’s price action moves away from the previous closing price. When day trading, one important strategy is to look for gapping stocks. There are many ways to take advantage of this move, and in this article, we will discuss how to identify gaps and some gap-fill trading strategies. ![]() If you day trade stocks, you probably heard the term “fill the gap.” Traders are interested in filling the gap because when a stock gaps in price, it will usually head in the direction of filling the previous day’s close price and today’s open price.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |