Best gap up stock scanner

How to use scanner step by step to find pre-market gap up stocks.

What is a gap?

A gap is simply a stock that has changed in price from yesterday‘s close to today’s open. I would say most stocks gap every single day even if it’s only a penny. More stocks gap every single day even if it’s only a penny, the problem is not all of those gaps are what we call compelling or meaningful all right. We’re looking for stocks that show shock value or create a void. Gaps are really important for intraday traders it gives us an edge. But, one of the really important parts of the gaps is if they’re really good gaps, level one gap! most of the time not always, the most of the time there’s gonna be institutional money in it and the stocks going to be on its own page. Now that’s a gap!. You’re just riding the tail of the whale that’s all your doing. You want the big banks to be right in front of you paving the way and plowing either way for you. It’s like Moses parting the Red Sea and they’re usually on their own page – JW

What is a scanner/screener?

A stock screener is a software designed to search for stocks using criteria provided by the user. … Scanners are designed for constant monitoring, using real-time stock data, for traders that want to information as it happens. Screeners are designed for traders who are not into trading on at-the-moment information.

Finding Gaps

Depending on what broker you are using this applies to the searching part of scanning so keep reading. 

Broker that this applies to :

  • Trade Station 
  • Merrill Edge 
  • TD Ameritrade 
  • Robinhood
  • Interactive Brokers 

There’s a lot of reasons a stock can gap. We don’t really care!

Most of the time it’s news related. Here are a couple of examples

• FDA drug approval or upgrade or downgrade.

• Warren Buffett buys $5 billion worth of Goldman Sachs.

• The CEO resigns

• It could be an earnings report….. usually earnings is the big one. I don’t care. The only time I care is when a stock is an all-cash buyer that is the only time. There the main exception to this rule is an all-cash buyer all right typical we don’t care why the stocks is gapping. We just care that it is.

 

 

Tips:

– When you trade aggressively. Only do so with level one gaps and always make sure to use your Entry/Stop loss/Target and share size appropriately.  The goal is to match the proper entry with the gap level so we can improve your accuracy.

– Not all stocks gapping up are bullish.

– Not all stocks gapping down bearish.

– Good news on a stock does not mean a stock will move up higher or come down in price.

– Level one Gap you can enter immediately.

– Level Two Gaps you need to wait 5 min before entering the trade. 

– Level Three Gaps you need to hold off a bit and wait for 15 to 20 min after the market has opened.

Their is 2 types of gaps Pro igniting and Novice 

Pro igniting gap:

– They change the long term trend/direction of the stock. By gapping against the current trend. BTW, some pro Igniting gaps can gap with the current no extended trend.

 

 

Novice ending gap:

– They change the current long term direction of the stock. They do so by gapping with the current trend which will make it extended and change the trend’s direction.

Key traits on Level One Gaps:

– Gaps over red or more wide range bars which are around 3% to 5%

– The gap gaps over 2 pivots or consolidation

– The gap gaps just barely to clear the pivot or the consolidation

– The gap gaps into a void where there is room to move higher

Key traits on level Two Gaps:

– The gap gaps over an average red bar / green bar

– The gap gaps over 1 pivot or more / a consolidation a well

– The gap gaps to clear pivot/consolidation but more than expected

– The gap gaps into the void with a room to move higher

First decide what kind of trader you are. You can be intra, swing, or day trader. If you want more information on what kind of traders you are click the button below. But here are some examples 

 So if you’re trading one minute, two minute, five minute, 15 minute chart your gonna be an intraday trader

If you’re trading 60 minute, daily chart where you’re holding a stock for 3 to 5 days or 2 to 4 days you’re a swing trader.

If you’re holding a stock for a month at a time for instance three months at a time then your a core trader.

If you are typically using weekly charts and monthly charts than your core trader.

If you’re on 60 minute charts and daily charts those are entry time frames.

If you’re entering on 60, weekly chart then you would consider yourself a core trader.

if you’re entering on a 60 minute chart you’re a swing trader.

Realistically speaking you should be doing BOTH! in the beginning I recommend you choose one style. Choose one style in the beginning and master it but I look at core trading as in… what more in what way a fundamental person would consider long-term investing…. you’re not touching these trades very often, your more like on monthly charts.

Once you are aware of what kind of traders you are then lets move forward and discuss the step by steps 

Steps By Steps Gap Up/Downs Stocks

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Finding a gap is easy since there is a lot of gaps that gap every single day. There is not a day a gap dont gap. For premarket you need to look for stocks with high volume. Why? Because their is institutional money behind it . Mean the banks are buying. When a gap gaps up, look at how much it gaped up. If the stock gaped up to excessively then that should tell you its to risky because it might ruin the reward to risk. 

If a stock gaps and its gapping to support or resistance or maybe into void then you might want to keep a closer look at it and wait for a pattern . Do not enter the trade yet

Why? 

We need to have our entry, stop loss, and target area already planned out before jumping in a trade. 

If a pattern does not form then maybe you can buy at level 2 uptrend…. The key point on this is knowing if your on a stage 2 uptrend stage /support area /or a double bottom retest.   To learn more about market stages click the button below

Before entering a gap ask these questions

– Where is it gapping to?

– Where is the stock gapping from?

– Is there shock value?

– Is the gap gapping to support or resistance?

– Is it gaping too much where it will ruin the reward to risk?

– Is it gapping to void or resistance?

Tips

– When you trade aggressively. Only do so with level one gaps and always make sure to use your Entry/Stop loss/Target and share size appropriately.  The goal is to match the proper entry with the gap level so we can improve your accuracy.

– Not all stocks gapping up are bullish.

– Not all stocks gapping down bearish.

– Good news on a stock does not mean a stock will move up higher or come down in price.

– Level one Gap you can enter immediately.

– Level Two Gaps you need to wait 5 min before entering the trade. 

– Level Three Gaps you need to hold off a bit and wait for 15 to 20 min after the market has opened.

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Investing Stock Ideas

If you simply cant sit in front of your computer, mobile phone or just dont have time to watch the market all day. Check This out 

– 3-8 stock trades every Sunday Per Week for a month for a total of 4 

Emails or SMS…….whichever you prefer. 

–Entry Price for the stock (which is where its the best price to buy a stock… BY THAT we look into a key point where a stock will change direction by doing what is called an ‘MTFA‘) 

Stop Loss for the stock… (Which is when to exit a stock IF it drops below a certain price. This will help you PROTECT YOUR investment portfolio)

 –The Target Area for the stock (which will be when to exit the trade when the Target Price has been reached.) 

– Cancel Anytime NO Long Term Contract 

3 thoughts on “Best gap up stock scanner

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