Gaps in 50% plus moves

Gaps in 50% plus moves

Friday, September 27, 2024

 

My 50% study is a daily analysis of stocks that have moved 50% or more in the last 40 days.

https://www.tc2000.com/~Ogsksj

This kind of explosive move often has news-based catalysts. Such catalysts can lead to gaps. But if the gaps are more than 20%, the stocks pull back most of the time. Smaller gaps are better. 

When you study the 50% move daily, you develop a good understanding of the nature of the 50% move.

One of the issues I have studied is whether to focus on gaps or ignore the big ones.

If you study the 50% plus moves, you will see that very few of them have gaps of 25% plus.

Small gaps are good. Big gaps can usually be ignored as they tend to be one-day moves. Most are in biotech or in buyout speculation stocks.

Do your own study to verify this.