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Volume & momentum scan

Gap and Go Screener

This scan finds stocks that opened at least 3% above yesterday's close, traded more than twice their average volume, and closed above their opening price.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: gap up 3% and volume above 2x average and close above open

  1. Gap % > 3
  2. Volume > 2× Avg vol(20)
  3. Close > Open

Find US stocks where the opening gap (%) is above 3; and today's volume is above 2 times the 20-day average volume; and the closing price is above the opening price.

Formula view
gap_pct > 3
AND volume > 2 * avg_volume(20)
AND close > open
Example chart: Gap and goDaily candles of a made-up sample stock with Lower panel: volume bars, and 2 × the 20-day average volume. The shaded day is the day the scan fired.
  • Lower panel: volume bars, and 2 × the 20-day average volume
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

A gap up means buyers were willing to pay much more than yesterday's close before the market even opened, usually because of news. Many gaps fill: the price falls back during the day. A "gap and go" is the kind that does not fill but keeps rising.

Closing above the open shows buyers kept control all day. High volume shows the move had wide support.

How traders use it

  • Day traders trade the move live. Swing traders use this end-of-day list for the next few days.
  • The low of the gap day is a common stop level.
  • Growth investors watch earnings gaps that hold very closely.

Watch out for

  • Gaps on thin news can reverse in the following days.
  • A huge gap leaves no nearby support, so the risk can be large.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What is a gap and go strategy?

Buying a stock that gapped up on news and keeps rising instead of falling back to fill the gap. Day traders use it in the first minutes; swing traders use daily closes.

Do all gaps get filled?

No. Many gaps fill, but strong gaps on big news and high volume often stay open for a long time.

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