What Defines a Tradeable Gap on a Scanner?
A gap is the difference between today’s opening print and yesterday’s close. Scanners quantify it as percent gap up or down once the regular session opens (or using the open print). Tradeable gaps combine meaningful percent—often 3% to 15% for large caps, higher for small caps—with supporting regular-session volume and an identifiable catalyst. Without volume, gaps fade. Without catalyst, gaps lack follow-through narrative. Filter gap min to exclude noise and gap max to exclude likely halt-prone parabolic opens unless you specialize in that sub-style.
Separate scan presets for gap up long continuation and gap down short continuation—rules differ. Pre-market scanning remains its own overnight prep workflow; gap scans focus on the open.
How Do You Scan for Gap-and-Go Versus Gap Fade?
Gap-and-go scans: gap up at the open, opening volume above threshold, price holding above prior close, sector strength, float not microscopic. Entry triggers often break the opening range high with rising relative volume after 9:30. Gap fade scans: gap up on a weak catalyst or into daily resistance, fading volume after the open, exhaustion candle patterns. Requires a clear failure signal—lose VWAP or opening low—not anticipatory shorting. Run different scans; mixing rules produces contradictory alerts.
Tag each morning’s gap leader by type before choosing strategy—breakaway, common, or exhaustion gap.
What Volume and Liquidity Filters Protect Gap Traders?
Minimum average daily volume—500,000 to 1,000,000 shares for many day traders. Maximum spread proxy via price tier—avoid sub-$3 names if slippage hurts edge. Relative volume at the open climbing, not collapsing. Average volume rank in the top of your universe. Gap scanners that ignore liquidity produce untradeable alerts on the hottest percent gainers with no shares available at quoted prices.
If opening volume looks strong but dries up quickly, downgrade from A-list to watch-only immediately.
How Should Stops and Targets Work on Gap Setups?
Continuation long: stop below opening low or VWAP reclaim failure; target prior day high extension or measured move. Fade short: stop above opening high; target partial gap fill or VWAP. Size smaller on the open than mid-day—volatility is highest the first 15 minutes. Partial profit at one R reduces stress when gaps reverse quickly. Write rules before the bell; gap emotion punishes improvised risk.
Time stop—exit if no follow-through within 15 to 30 minutes when trading opening gap momentum.
What Common Gap Scanner Mistakes Should You Avoid?
Chasing the percent leader without shares at the ask. Shorting gap strength without a borrow check. Trading every gap scan hit instead of the top two by volume. Ignoring daily chart overhead. Fading earnings gap winners on hope. Gap scanner strategies succeed when filters enforce liquidity and catalyst quality and execution waits for confirmation bar closes.
Journal gap type and outcome weekly—regime shifts which gap style pays for months at a time.