GLOSSARY // Day Trading

Gap and Go

Gap and go is a momentum setup where a stock gaps up on a catalyst and continues higher after the open instead of fading. The entry is early — often the break of the premarket high or the first opening range high — on the thesis that a strong gap with a hard catalyst attracts a full day of follow-on buying.

The filter list is what makes it work: a real catalyst, a gap large enough to matter (traders often screen 4%+ or 10%+ depending on style), heavy premarket volume, and ideally a lower float so demand overwhelms supply. Gaps missing those ingredients are statistically more likely to fill, which is the opposite trade.

worked example

A $7.00 stock gaps to $8.60 on an earnings beat with 2M shares traded premarket against a 9M float. The premarket high is $8.75. At 9:31 a.m. it breaks $8.75; a trader enters at $8.80 with a stop at $8.44 under the opening range. The stock trends to $10.20 by 11:00 a.m. without ever retesting the open.

Put it to work

Related terms

Educational only — not financial advice. Definitions simplified for clarity; markets are messier than definitions.