S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)

Gap Up Stocks

A gap is a break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Stocks that "gap up" are companies that open at prices that are significantly higher than their previous closing prices, often due to after-hours news items that positively impact investor perceptions of a company's valuation. More about gap up stocks.

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CompanyGap Up %Opening PricePrevious CloseCurrent PricePrice Change Since OpenDaily VolumeIndicator(s)
Amylyx Pharmaceuticals, Inc. stock logo
Amylyx Pharmaceuticals
+79.1%$32.05$17.90$28.86-10.0%266,874News Coverage
Gap Up
First High-School Education Group Co., Ltd. stock logo
First High-School Education Group
+26.9%$0.81$0.64$0.69-15.8%4,642News Coverage
Gap Up
Asana, Inc. stock logo
+24.2%$23.64$19.04$23.62-0.1%286,731Earnings Report
Analyst Report
Options Volume
News Coverage
Gap Up
AcelRx Pharmaceuticals, Inc. stock logo
AcelRx Pharmaceuticals
+20.7%$0.35$0.29$0.29-18.1%206,847Gap Up
Avalo Therapeutics, Inc. stock logo
Avalo Therapeutics
+16.6%$5.82$4.99$5.41-7.0%1,974News Coverage
Gap Up
SPAR Group, Inc. stock logo
SPAR Group
+15.7%$1.47$1.27$1.43-2.7%307News Coverage
Gap Up
Trading Halted
Revance Therapeutics, Inc. stock logo
Revance Therapeutics
+15.2%$23.98$20.81$23.23-3.1%96,979Options Volume
News Coverage
Gap Up
Eve Holding, Inc. stock logo
+15.1%$7.09$6.16$7.07-0.3%593Gap Up
Bright Green Co. stock logo
Bright Green
+14.1%$1.78$1.56$1.57-11.8%37,356News Coverage
Positive News
Gap Up
InflaRx stock logo
+13.7%$2.65$2.33$2.54-4.2%3,587News Coverage
Gap Up
Purple Biotech Ltd. stock logo
Purple Biotech
+13.7%$2.58$2.27$2.20-14.7%52,461Analyst Report
Gap Up
WaveDancer, Inc. stock logo
+12.2%$0.55$0.49$0.51-7.3%1,395Analyst Report
News Coverage
Negative News
Gap Up
Corvus Pharmaceuticals, Inc. stock logo
Corvus Pharmaceuticals
NexImmune, Inc. stock logo
+11.9%$1.41$1.26$1.43+1.4%467,832Gap Up
High Trading Volume
Rubius Therapeutics, Inc. stock logo
Rubius Therapeutics
+11.7%$0.97$0.87$1.12+15.5%87,902News Coverage
Gap Up
Intapp, Inc. stock logo
+11.6%$16.41$14.70$16.58+1.0%3,519Analyst Report
News Coverage
Gap Up
Clene Inc. stock logo
+11.3%$3.25$2.92$2.83-12.9%824Gap Up
Deswell Industries, Inc. stock logo
Deswell Industries
+10.8%$3.49$3.15$3.49flat14Upcoming Earnings
News Coverage
Gap Up
Graybug Vision, Inc. stock logo
Graybug Vision
iClick Interactive Asia Group Limited stock logo
iClick Interactive Asia Group
+10.1%$0.44$0.40$0.39-11.9%158Gap Up
GameStop Corp. stock logo
+9.8%$26.40$24.04$25.68-2.7%170,141Earnings Report
News Coverage
Gap Up
Centessa Pharmaceuticals plc stock logo
Centessa Pharmaceuticals
+9.8%$4.60$4.19$4.50-2.2%200Positive News
Silence Therapeutics plc stock logo
Silence Therapeutics
Regeneron Pharmaceuticals, Inc. stock logo
Regeneron Pharmaceuticals
+9.4%$652.64$596.44$677.45+3.8%17,507Trading Halted
Western Asset Municipal High Income Fund Inc. stock logo
Western Asset Municipal High Income Fund
+9.3%$7.30$6.68$7.30flat1Gap Up
Value Line, Inc. stock logo
Value Line
+9.2%$81.39$74.53$81.39flat137Upcoming Earnings
Gap Down
SharpLink Gaming Ltd. stock logo
SharpLink Gaming
Applied Molecular Transport Inc. stock logo
Applied Molecular Transport
+9.0%$1.46$1.34$1.44-1.4%900Gap Up
Ucommune International Ltd stock logo
Ucommune International
+8.7%$5.98$5.50$5.98flat1Upcoming Earnings
Skillful Craftsman Education Technology Limited stock logo
Skillful Craftsman Education Technology
+8.7%$1.00$0.92$1.01+1.0%531News Coverage
Gap Up
Phreesia, Inc. stock logo
+8.4%$25.92$23.92$27.33+5.4%16,922Analyst Report
News Coverage
Gap Up
D-Wave Quantum
+8.3%$6.56$6.06$6.56flat25Gap Up
InMed Pharmaceuticals Inc. stock logo
InMed Pharmaceuticals
+7.8%$9.49$8.80$9.20-3.1%2,960Stock Split
News Coverage
Gap Up
Trading Halted
Vicinity Motor Corp. stock logo
Vicinity Motor
+7.8%$1.25$1.16$1.22-2.4%18,100Gap Up
Innoviz Technologies Ltd. stock logo
Innoviz Technologies
+7.6%$5.37$4.99$5.11-4.8%23,478News Coverage
Gap Up
Landos Biopharma, Inc. stock logo
Landos Biopharma
Spectrum Pharmaceuticals, Inc. stock logo
Spectrum Pharmaceuticals
+7.5%$1.29$1.20$1.21-6.6%34,688Gap Up
Applied Optoelectronics, Inc. stock logo
Applied Optoelectronics
+7.4%$2.31$2.15$2.31flat100Gap Up
QuickLogic Co. stock logo
+7.4%$6.80$6.33$7.29+7.2%1,150Gap Up
Inozyme Pharma, Inc. stock logo
Inozyme Pharma
+7.2%$3.14$2.93$3.14flat20Positive News
Gap Up
The Lovesac Company stock logo
+7.1%$32.00$29.88$28.55-10.8%9,500News Coverage
Gap Up
Brainstorm Cell Therapeutics Inc. stock logo
Brainstorm Cell Therapeutics
+6.8%$3.44$3.22$3.56+3.5%2,545Gap Up
Ideanomics, Inc. stock logo
+6.8%$0.59$0.55$0.55-7.3%13,248Upcoming Earnings
News Coverage
Gap Up
Ardelyx, Inc. stock logo
+6.7%$1.28$1.20$1.28-0.4%110,450Gap Up
Medicenna Therapeutics Corp. stock logo
Medicenna Therapeutics
Relay Therapeutics, Inc. stock logo
Relay Therapeutics
+6.6%$27.02$25.35$30.38+12.4%71,074Gap Up
Maxeon Solar Technologies, Ltd. stock logo
Maxeon Solar Technologies
+6.6%$22.61$21.22$23.30+3.1%9,889Analyst Upgrade
Gap Up
Mind Medicine (MindMed)
+6.4%$8.97$8.43$8.98+0.1%7,203Stock Split
Gap Up
Alaunos Therapeutics, Inc. stock logo
Alaunos Therapeutics
+6.4%$3.66$3.44$3.42-6.6%42,470Options Volume
Gap Up
Pyxis Tankers Inc. stock logo
Pyxis Tankers
+6.4%$3.34$3.14$3.38+1.2%881News Coverage
Terns Pharmaceuticals, Inc. stock logo
Terns Pharmaceuticals
+6.3%$4.04$3.80$4.40+8.9%456Gap Up
Eton Pharmaceuticals, Inc. stock logo
Eton Pharmaceuticals
+6.2%$2.38$2.24$2.38flat1Gap Up
Sientra, Inc. stock logo
+6.2%$0.65$0.61$0.65flat100Gap Up
Annovis Bio, Inc. stock logo
Annovis Bio
+6.2%$11.19$10.54$11.80+5.5%274Analyst Report
Gap Up
IRIDEX Co. stock logo
+6.0%$2.63$2.48$2.63flat127Gap Up
VistaGen Therapeutics, Inc. stock logo
VistaGen Therapeutics
+6.0%$0.17$0.17$0.17-0.1%103,378Gap Up
Reviva Pharmaceuticals Holdings, Inc. stock logo
Reviva Pharmaceuticals
+6.0%$2.31$2.18$2.20-4.8%6,049News Coverage
Gap Up
ENGlobal Co. stock logo
+5.9%$1.62$1.53$1.62flat124Gap Up
Aspira Women's Health Inc. stock logo
Aspira Women's Health
+5.7%$0.52$0.49$0.52+0.4%201Positive News
Aspira Women's Health Inc. stock logo
Aspira Women's Health
+5.7%$0.52$0.49$0.52+0.4%201Positive News
Ayala Pharmaceuticals, Inc. stock logo
Ayala Pharmaceuticals
+5.7%$1.85$1.75$1.81-2.2%512Gap Up
BioAtla, Inc. stock logo
FaZe Holdings Inc. stock logo
+5.2%$12.73$12.10$12.28-3.5%2,685Gap Up
Athersys, Inc. stock logo
+5.1%$2.28$2.17$2.35+3.1%4,166Stock Split
Gap Up
Allego stock logo
Neovasc Inc. stock logo
+5.0%$7.72$7.35$7.37-4.5%298News Coverage
Gap Up
Salarius Pharmaceuticals, Inc. stock logo
Salarius Pharmaceuticals
+5.0%$0.21$0.20$0.21flat2Gap Up
TSR, Inc. stock logo
Asensus Surgical, Inc. stock logo
Asensus Surgical
+5.0%$0.55$0.53$0.54-2.0%4,744Gap Up
Cazoo Group Ltd stock logo
Cazoo Group
+4.9%$0.64$0.61$0.70+9.4%26,790News Coverage
Gap Up
Kinnate Biopharma Inc. stock logo
Kinnate Biopharma
+4.8%$14.55$13.88$14.49-0.4%375News Coverage
Gap Up
Chuy's Holdings, Inc. stock logo
+4.6%$22.29$21.30$22.29flat2News Coverage
Gap Up
Vivani Medical
First Solar, Inc. stock logo
First Solar
+4.6%$141.02$134.80$139.22-1.3%89,258Analyst Upgrade
Gap Up
+4.6%$2.75$2.63$2.75flat600News Coverage
Gap Up
BeyondSpring Inc. stock logo
+4.5%$1.38$1.32$1.38flat20Upcoming Earnings
Positive News
Gap Up
Marker Therapeutics, Inc. stock logo
Marker Therapeutics
+4.5%$0.32$0.30$0.32flat500News Coverage
Gap Down
Oriental Culture Holding LTD stock logo
Oriental Culture
Gracell Biotechnologies Inc. stock logo
Gracell Biotechnologies
SPI Energy Co., Ltd. stock logo
SPI Energy
+4.4%$1.67$1.60$1.69+1.2%2,120Gap Up
Alpha Teknova, Inc. stock logo
Alpha Teknova
Olema Pharmaceuticals, Inc. stock logo
Olema Pharmaceuticals
+4.3%$3.89$3.73$3.93+1.0%1,182Gap Up
Accolade, Inc. stock logo
+4.3%$10.98$10.53$10.77-1.9%6,145Analyst Report
Gap Up
Rigetti Computing, Inc. stock logo
Rigetti Computing
+4.2%$2.46$2.36$2.38-3.3%40,093Options Volume
Gap Up
Kazia Therapeutics Limited stock logo
Kazia Therapeutics
+4.2%$1.49$1.43$1.50+0.7%300Analyst Revision
News Coverage
Positive News
Gap Up
Reed's, Inc. stock logo
+4.2%$0.20$0.20$0.20-4.3%912Gap Up
Reed's, Inc. stock logo
+4.2%$0.20$0.20$0.20-4.3%912Gap Up
+4.2%$0.20$0.20$0.20flat800Analyst Report
News Coverage
Gap Up
Katapult Holdings, Inc. stock logo
Panbela Therapeutics, Inc. stock logo
Panbela Therapeutics
+4.1%$0.60$0.58$0.58-4.0%1,770Gap Up
Cinedigm Corp. stock logo
+4.1%$0.52$0.50$0.52-0.9%9,800Gap Down
VanEck Biotech ETF stock logo
VanEck Biotech ETF
+4.0%$149.46$143.66$150.38+0.6%2,400News Coverage
Gap Up
Shattuck Labs, Inc. stock logo
Shattuck Labs
+4.0%$3.41$3.28$3.32-2.6%114Gap Up
Fathom Digital Manufacturing Co. stock logo
Fathom Digital Manufacturing
+3.9%$2.91$2.80$2.94+1.0%305Gap Up
Yext, Inc. stock logo
+3.9%$4.50$4.33$4.30-4.4%25,197News Coverage
Gap Up
SOS Limited stock logo
+3.9%$5.58$5.37$5.50-1.4%268Gap Up
Nuveen Multi-Market Income Fund
+3.9%$6.38$6.14$6.38flat15Dividend Announcement
Positive News
Soligenix, Inc. stock logo
+3.8%$0.73$0.70$0.73flat17Positive News
Skeena Resources Limited stock logo
Skeena Resources
+3.8%$4.91$4.73$5.30+7.9%1,769Analyst Revision
News Coverage
Gap Up
How Investors Can Identify and Successfully Trade Gap-Up Stocks

Trading gap-up stocks can be a profitable strategy for active, risk-tolerant investors

A gap-up stock is one that opens trading at a higher level than the previous day’s closing price. This is often signified by a sharp move with no other trading occurring before or after the gap. Investors can identify gap-up stocks during after-hours and pre-market trading. Reasons why a sock may gap up include the release of news about the stock, such as a favorable earnings report or some sort of geo-political event that may incite speculators to bid up the price of the stock.

A gap-up stock represents a significant stock trading opportunity. However, it requires the discipline to follow the trend and setting trailing stops that allow investors to exit the trade when the direction of the stock no longer supports that trend.

In this article we’ll break down gap-up stocks by defining what they are and how you can identify them. We’ll also provide an overview of gaps so that you can understand how to interpret a stock chart. We’ll also go over the most common gap trading strategies.

Why Are Gap-Up Stocks Important?

A stock that is gapping up indicates a large volume of buyers. However, what’s harder to tell is whether the gapping action is short lived or whether it will continue to become a trend. Investors who want to trade gap-up stocks can easily find them by using a stock screener. Once you identify a potential gap-up stock to trade, you should carefully study the longer term charts of the stock to see if there are clearly defined areas of support and resistance.

If you’re new to gap trading, it is important to look at stocks that are trading with a high volume (a good average volume is above 500,000 shares a day). A gap up stock is clearly represented in a candlestick pattern. A candlestick is a technical indicator that shows the opening and closing price of a stock for a specific period. The color and composition of the candlestick provide information about a stock’s direction and momentum.

How Can Investors Interpret the Significance of a Stock that is Gapping Up?

The gap in a gap-up stock is either a “full gap” or “partial gap”.

  • A full gap occurs when a stock opens at a higher level than the previous session’s high.
  • A partial gap occurs when a stock opens above the previous day’s closing price.

Here’s an example that illustrates the difference between a full gap and a partial gap. During the trading day, the stock of Company ABC closes at $39. However, during the day the stock was trading as high as $41. At the opening bell the next day, the stock opens at $42.50. That stock would be opening higher than both its previous close ($39) and its previous daily high ($41). This would indicate a full gap. However, if the same stock opens at $40, it will only show a partial gap. While closing above its previous closing price of $39, it did not “gap up” above the previous session’s high price of $41.

 The importance of understanding the difference between a full gap and a partial gap is about supply and demand which highlights the difference in risk and potential gain. In general, full gap stocks provide a better opportunity for profit over several days.

For example, a full gap means there is usually sufficient desire to buy or sell the stock. This increased demand will be a signal to market makers that there has to be a significant price change to accommodate any orders that have to be filled. With a partial gap, demand might be such that only a small price increase above the closing price will allow buy or sell orders to be filled.

Beyond the terms full gap and partial gap, gaps generally fall into one of four categories:

  • Breakaway Gaps – These are gaps that take place at the end of a pricing pattern and signal the start of a new trend. Breakaway gaps will coincide with high volume.
  • Exhaustion Gaps – These are gaps that take place towards the end of a pricing pattern and represent a final attempt to set a new high or low. Exhaustion gaps will coincide with low volume.
  • Common Gaps – These are gaps that cannot be placed in a price pattern. These simply represent an area where the price has gapped.
  • Continuation Gaps – These gaps occur in the middle of a price pattern and signal a rush of buyers or sellers who share a common belief in the underlying stock’s future direction.

It is common for gaps to get filled in naturally. This means the stock price will move back to its original level. Because of the volatility around earnings season, this is typically a time when stocks will make large price movements.

In some cases, investors (usually individual investors) may be overly enthusiastic about a stock. In almost every case, this will result in a correction. Another reason may be due to a lack of support and resistance. Support and resistance lines are technical indicators that traders can use to set price targets. When a stock gaps up, it usually doesn’t leave behind a support or resistance line to anchor that price level. Finally, the type of price pattern can indicate whether a gap will be filled. For example, exhaustion gaps come at the end of a price pattern, making them more likely to be filled. Breakaway and continuation gaps, which are confirming the direction of a trend, are less likely to be filled.

When gaps get filled within the same trading day as they occur, the gap is said to have undergone fading. This is common during times such as earnings season.

What are Some Effective Trading Strategies for Gap-Up Stocks?

As an investment strategy, trading gaps involve stocks that have above-average volatility. This also means it entails above average risk. However, investors can trade gaps successfully (and profitably). Here are some guidelines that can help you stay away from poor gap-up stock trades.

  • If the gap of a stock has started to fill, it will almost always continue in that direction. This is because the stock has no immediate support and resistance.
  • Be sure you understand the type of gap you are trading. An exhaustion gap and continuation gap move in opposite directions.
  • Before you take a position, be sure that the stock price has started to break in the direction you foresee. Individual investors are the ones who tend to get overly enthusiastic about a stock. This plays into the hand of institutional investors who may support the trend in order to boost their portfolios.
  • The volume should be consistent with the kind of gap you are trading.

Once you are familiar with the mechanics of gaps and understanding how to look for potential gap trading opportunities, it’s time to look at some common gap trading strategies. These involve having clear rules for entering and exiting a trade. Gap trading can be risky and having the discipline to follow entry and exit points is one way for you to help minimize that risk.

For each gap up strategy, there is a short and a long trading signal. Most gap trading occurs one hour after the market opens to allow time for the stock price to settle into a range. No matter what strategy is being used, it is important to set trailing stops that provide a point where you exit the trade in case the trade starts moving in the opposite direction. For example, if you buy a stock at $50, you could set a trailing stop of 5 percent, in this case $47.50. If the stock rises to $60, you raise the stop to $55.50 (5% of $60) and keep on raising it while the price rises. The opposite would occur if you’re trying to short the same stock at $50. In this case, you would set a trailing stop at $53.50. If the price drops to $40, you would reset the stop at $42. Trailing stops will usually be tighter (smaller) for partial gap stocks as opposed to full gap stocks.

Here are the most common trading strategies for gap-up stocks. These will occur one hour after the market open (typically 10:30 A.M. EST). The same strategy is applied to either full gap or partial gap positions. These strategies also work for after-hours or pre-market trading.

  • Long Position (Buy): Set a long trailing stop at two ticks (defined by the bid/ask spread) above whatever the high stock price was in the first hour of trading after the market open. The bid/ask spread is usually either one-eight or one-quarter point.
  • Short Position (Sell): Set a long trailing stop at two ticks below the lowest stock price reached in the first hour of trading.

What is the Modified Trading Method?

The Modified Trading Method is an advanced version of the two strategies shown above. This method can apply to either the long or short position. The difference in this method is that instead of requiring a trader to wait until the price breaks above the high (long) or below the low (short), they trade in the middle of a price rebound. This strategy is only used on a stock that has been trading on at least 2X its average volume over the previous five days.

  • Modified Trading Method Long Position (Buy): Set a long stop that is equal to the average of the open price and the high price that was set in the first hour of trading.
  • Modified Trading Method Short Position (Sell): Set a long stop that is equal to the average of the open price and the low price that was set in the first hour of trading.

Do Gap Trading Strategies Work?

Many investors engage in momentum trading. To these investors “trading the gap” (also called “gapping”) is not logical. After all, what goes up must come down – and usually hard. So if a stock gaps up, it’s due for a correction?

This thinking can be true for stocks that show weak fundamentals, or when the market is trending down. In those cases, gap-up stocks – no matter how strong the lift – rarely stay at those levels. However, that thinking can work against investors when the right conditions are met.

For example, in a bullish market, a stock that is showing strong fundamentals may gap up after a strong earnings report. When institutional investors learn about the bullish report, they may drive the price even higher. If traders stay away from the stock believing that momentum is working against them, they may miss out on significant gains.

The Bottom Line on Gap-Up Stocks

One of the easiest ways to trade stocks, especially if you are looking to become a day trader is to look for gap-up stocks. Gap-up stocks are stocks that show significant price movement after the stock market closes for the day.

Investors can find gap-up stocks at any time. However, they are particularly common during earnings season when top line and/or EPS numbers that beat analysts’ expectations can cause a stock to surge. Today’s online stock screeners give investors an easy way for traders to identify and track gap-up stocks.

Trading gap-up stocks requires a disciplined system that requires traders to use trailing stops at well-defined entry and exit points to limit loss and protect profits. Not every gap stop is ideal for trading. Investors need to pay attention to other technical indicators such as trading volume to decide whether or not a stock may produce a profitable trade.

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