Trading Spotlight: The Gap and Go Strategy

One of the most popular momentum trading strategies for day traders is the Gap and Go — a simple yet powerful approach to capitalizing on early market volatility.

What is it?

The Gap and Go strategy targets stocks that “gap up” in the pre-market due to strong news (like earnings or press releases), then continue upward ("go") at the market open.

Why does it work?

These gaps often signal strong demand and trader interest. If volume stays high and there's little resistance, early buyers can ride the momentum for fast intraday profits.

Key Indicators:

• Pre-market gap of at least 4–5%

• High relative volume

• No nearby resistance (e.g., previous highs)

• Clean daily chart with room to run

This is a high-speed strategy, usually executed within the first 15–30 minutes after the open. Traders often enter right at the break of the opening high and set tight risk levels.

Because momentum can fade quickly, successful gap-and-go traders:

• Use stop-losses religiously

• Avoid chasing if the setup isn’t clean

• Size positions based on volatility

Whether you're just getting into day trading or looking to refine your approach, the Gap and Go is a great place to study volume psychology, breakout behavior, and risk control.