Gap Trading Strategy

When you subscribe to the “Gapping Stocks Strategy” you will have access to a list of stocks that are predicted to gap when the market opens. The prediction of gaps is developed using a proprietary technique. By subscribing to the gapping stocks strategy, you can have access to the stocks that gap each day and the possibility of making significant trading profits each day.

In the example above, PAYX gapped up at the open and continued its upward climb. Each day, there are dozens of opportunities like this.

Each day, dozens of stocks gap up or down at the market open as a result of some preceding event. Gapping stocks create buying opportunities when there is either insufficient buying pressure to sustain the move up in price (gap-up) or a market realization that the stock has fallen to a periodic unprecedented low point (gap-down). The market’s reaction to these phenomena can be transformed into money-making opportunities.

According to our extensive research, there are four basic types of gaps: A full gap up occurs when the opening price is greater than yesterday’s high price. A full gap down occurs when the opening price is less than yesterday’s low. A partial gap up occurs when today’s opening price is higher than yesterday’s close, but not higher than yesterday’s high. A partial gap down occurs when the opening price is below yesterday’s close, but not below yesterday’s low.

What do you get when you subscribe? Daily e-mails with information on gapping stocks.

  • Information on size of the gap

  • Information on the price range where buying the stock where probability of success is greatest

Your daily gapping stocks report will look like the following:

For stocks that are expected to gap up, we try to get in at the market open if the price is within our target range (Closing Price to Expected Open Price) . We set our entry point between 9:30 am and 9:45 am. If the order does not get filled in that time frame then we cancel the order. We typically set a stop loss of 8% below the market entry point. Our profit is usually range from $0.45 to $1.50.