Gap Alerts
This tool sends you alerts on unusually volatile large-cap stocks that are gapping up/down pre-market by over 1.0%. It also pushes these alerts to your phone and laptop as a Discord alert accompanied by a screenshot of the chart at the instant of the alert and a link to the chart on TradingView (Figure 1).
Figure 1: Screenshot of the Gap Tool alert firing in Discord
Scanners suck!!
- 1.They can find setups but they take a long time to look through.
- 2.They aren’t pushed to you as an alert or notification, you have to monitor them yourself.
- 3.They’re often not on the same screen as the chart of the stock you’re looking for, so they’re out of context.
An alert system like this addresses all of these issues.
- 1.We scan over 100 large-cap stocks
- 2.Its daily Average True Range (ATR) must be higher than its 14-day ATR; aka it’s unusually volatile relative to its past behavior. This ensures we’re not just sending the same 5 volatile large caps every day!
- 3.It is a gap that has formed overnight and is still in effect during pre-market and at market open
- 4.It has a gap larger than 1.0% in either direction.
Figure 2: Gap Tool Criteria
This tool will hopefully help identify potential gap trades. What’s that?
Gaps in a stock chart occur when the price of a stock moves suddenly up or down, usually in response to news outside of market hours. In some cases, these gaps don’t last — rather, they’re “filled” as trading action brings the price back towards the previous close. These gap fills present opportunities for trading. (Center Point Securities)
TL;DR although gaps don’t always fill right away, they often do. Thus, they can be high-probability trades to start off the day.