GDR
▲ Bullish
Streaming Alert (Scanner)
Gap Down Reversal Alert (GDR)
By Daniel Mirkin, CEO, Trade Ideas. Updated October 2026.
Find gap down stocks that reverse and cross yesterday's close in real time with Trade Ideas Streaming Alerts (Scanner). A gap down reversal is when a stock gaps down at the open, then reverses and crosses yesterday's close for the first time since the open, filling the gap.
Stocks moving off the open.
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Streaming Alerts show a gap down reversal the moment price climbs back over yesterday's close.
How Trade Ideas finds it: by default, the gap down reversal alert will appear when a stock price crosses yesterday's closing price from below for the first time since today's open. See Trade Ideas plans and pricing to run it live.
What is a gap down reversal?
A gap down reversal is a stock that opens below yesterday's close, finds buyers, and climbs back above that close. It went from down on the open to up on the day.
The alert goes off the first time price gets back over yesterday's close after the open.
Parts of a gap down reversal
The gap down
The open is below the prior close, often on news or a weak market.
The recovery
Buyers step in and price works its way higher.
Back over the close
Price trades above yesterday's close. The alert fires here.
How traders use it
Step 1: Let the Trade Ideas alert find it
Switch on GDR, the Gap Down Reversal alert. A relative volume filter helps you focus on the stocks that are really active. See it live in the Web Dashboard.
Step 2: Wait for the trigger
Key point
The first trade above yesterday's close is the trigger. Some wait for a pullback that holds above it.
Step 3: Entry
Buyers often enter near the cross, using the old close as a level to lean on.
Step 4: Exit
Under yesterday's close or under the morning low are the usual stop spots. That is typical, not a recommendation.
Tips
- Strong market days help gap down reversals.
- A bigger gap that fully recovers stands out more.
- If price keeps losing the close level, the setup is breaking down.
- See also False Gap Down Retracement (FGDR).
Past results, including backtests, are not indicative of future results.
How the Gap Down Reversal alert works
Key point
A gap is when a stock changes price between yesterday's close and today's open. A gap reversal is when a stock moves in one direction between yesterday's close and today's open, then moves in the other direction after today's open. A gap reversal alert occurs when a stock price crosses yesterday's closing price for the first time since today's open.
Key point
This alert reports the size of the gap. The gap is defined as today's opening price minus yesterday's closing price. If this value is negative, and the stock price moves down between the close and the open, this is called a "gap down". If the close and the open have the same price, there is no gap, and this alert will not occur.
Note: This is a very common definition of "gap", but this is not the only definition of gap. This alert also reports the continuation. If the stock gaps in one direction, then immediately starts trading in the other direction, there is no continuation. However, if the stock gaps in one direction, then continues to trade in that direction before eventually reversing, that is called a continuation.
Key point
The size of the continuation is the amount that the stock moved in the direction of the gap, after the open, but before the reversal. This alert will occur the instant a stock price crosses yesterday's close, even by a fraction of a penny. Normally this alert will not occur more than once per day.
It is possible to see this more often if the exchange reports a correction to a bad print.
Default settings
By default, the gap down reversal alert will appear when a stock price crosses yesterday's closing price from below for the first time since today's open.
Custom settings
Settings
For 'Gap Down Reversal' alerts, you have the option to use an alert specific filter. This filter is located immediately to the right of the corresponding alert and is always optional. You can decide to leave it blank if you want to receive more alerts, or you can fill it in to restrict the number of alerts you receive. This filter allows you to specify the quality of the alert. When you set a higher number for this filter, you are telling the alerts server to display only alerts that meet a higher quality standard, resulting in fewer alerts being shown.
When setting an alert for 'Gap Down Reversal', the user can filter gap reversals based on the maximum distance that the price moved away from the close. This value is called the total retracement. The user can specify a minimum value for the total retracement and will not see alerts with a smaller total retracement. For example, assume a stock closes at $10.00. Assume the stock opens at 10.75.
Settings
Assume the stock trades up as high as 10.85. Then the price drops to 9.99. In this case the gap would be $0.75, the gap continuation would be 0.10, and the total retracement would be 0.85. The default for this value is 0. Any time a stock opens at a different price than the previous close, that stock might create a gap reversal alerts.
The difference between the open and the close can be less than $0.01.
What the alert shows you
The description of the alert will report the size of the gap and the gap continuation.
Add the quality column to a scan using the 'Gap Down Reversal' alert to see the sum of the gap and the gap continuation.
Related alerts
Filters to pair with the Gap Down Reversal alert
Categories
FAQ
Which gap down stocks are reversing and filling the gap today?
Turn on the Gap Down Reversal alert (GDR) in Trade Ideas Streaming Alerts. By default, the gap down reversal alert will appear when a stock price crosses yesterday's closing price from below for the first time since today's open.
What is the Gap Down Reversal alert?
A gap down reversal is when a stock gaps down at the open, then reverses and crosses yesterday's close for the first time since the open, filling the gap.
How do I see fewer, higher-quality Gap Down Reversal alerts?
Use the optional alert-specific filter immediately to the right of the alert. A higher number tells the alerts server to show only higher-quality alerts, so fewer appear. Leave it blank to see more.
What is the opposite of the Gap Down Reversal alert?
What is a gap down reversal?
A stock that opened below yesterday's close and then traded back above it.
Is a gap down reversal bullish?
Traders read it that way, since the stock recovered the whole gap and more.
How is GDR different from a gap fill?
A fill reaches the prior close. GDR fires when price crosses above it.
Can I set a minimum gap size?
Yes. Use a gap filter so only gaps above your size show up.