![]() ![]() This entry did not lead to an immediate follow-through in price, but definitely could have. Breakout above consolidation – The first breakout above the high of a brief consolidation can also be bought.This is especially true when that touch occurs above the close of the gap up day, typically a strong area of support in a high-quality gap up. Pullback to 10-day MA – After a massive earnings gap, the first pullback that touches the 10-day moving average (teal line) can be bought.This entry worked with $SNAP, but required some patience to hold. This entry technique sometimes requires a wide stop down to the low of the gap up day, but this buy point works especially well when the stock explodes higher right away. Above high of the gap up day – Buying on a rally above the high of the gap-up day is a solid entry.Match each number below with the chart annotations above: Gap Trading Strategy: A closer look at each buy entry point $SNAP also had both impressive earnings growth and high liquidity: Press chart to view larger image The $SNAP earnings gap up had everything we look for: Snapchat ($SNAP) gapped sharply higher after reporting strong earnings, closing +28% higher on 10x average volume- on just the first day post-earnings. The Morpheus gap trading strategy focuses on 5 simple entry points for buying breakaway gap stocks.īelow, we use the example of internet stock Snapchat ($SNAP) to show each of the 5 entry techniques. Some of these gapping stocks are already up 15% to 30% (above the prior day’s close) before we even begin to buy- yet these “gap and go” stocks often become our biggest winners. However, the 20-year track record of our swing trading service has proven it’s actually a major Buy signal when a stock gaps sharply higher after reporting earnings (or other news). You may think the price is “too extended” or “overbought.” ![]() If you’re a new trader, it can especially be a little scary to buy a breakaway gap stock that is already showing a massive percentage gain. Simple tips for a reliable gap trading strategy.Snapchat ($SNAP) gains +80% in 3 months (after gap up buy entry point).Gap Trading Strategy: A closer look at each buy entry point.The $SNAP earnings gap up had everything we look for:.Snapchat ($SNAP) +28% gap up after earnings.5 top ways to buy a Breakaway Gap stock.Let’s take a look at 5 top ways you can buy stocks gapping up from earnings-just in time for the upcoming earnings season. If so, this exclusive gap trading strategy article is just for you. Perhaps YOU wanted to buy a stock gapping up, but were unsure of how to find a proper entry point? Have YOU ever shied away from buying a breakaway gap that went on to be a monstrous winner? Despite the huge profits an overnight gap trading strategy can yield, many swing traders often make the costly mistake of avoiding explosive breakaway gap stocks. Yet, newer traders are often surprised by just how reliable a winning gap trading strategy can be. ![]() That’s why our swing trade alerts service focuses on a simple gap trading technique to help members profit during earnings season. The gap trading strategy is widely used among professional traders because it has proven extremely effective. It’s crucial to know exactly when and how to buy stocks gapping up from earnings. This causes a stock to gap up and open well above its prior closing price.īuying gap up stocks can lead to explosive short-term gains ( especially in a bull market), but timing is key. When a stock blows away analyst earnings expectations, investors bid the stock higher in the post and pre-market. If there’s one thing that makes for a perfect opportunity for stock traders, it’s earnings season. ![]() Here are 5 top ways to enter breakaway gap stocks during earnings season. A winning gap trading strategy for stocks can lead to explosive gains, but only if you know the proper time to buy. ![]()
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