All Gaps Aren’t Created Equally

All Gaps Aren’t Created Equally

A popular stock gaps up $1 from yesterday’s close. How unusual is that?

It depends, of course.

A $1 gap could be substantial for a low-priced stock. Yet for a high-priced stock, it may not make much of a difference.

You can look at Gap %, but even that hides important information. The reality is, regardless of their price, some stocks simply have more daily movement than others. What’s unusual for one stock might be completely routine for another.

This is why in Trade Ideas we have established ‘normal’ behavior baselines for all stocks. These baselines allow you to create profitable strategies by looking for truly unusual events in the market.

Trade Ideas lets you filter out market noise and set real-time alerts for the most meaningful and powerful trade signals, all based on these baselines.

Here’s how I do it in my Gapper trading strategy using Trade-Ideas.

Dave Mabe is a trader and the CTO at Trade-Ideas. He helps traders make more money by improving their strategies.

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