Intraday trading
What is the catalyst-driven gap and go strategy?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
The 'gap and go' strategy targets stocks that gap up significantly pre-market on a catalyst, then trades the continuation of that momentum shortly after the open.
How it works
Traders typically wait for the first 1-5 minute candle to confirm direction and often use the pre-market high as a breakout trigger with a stop below that level.
An example
A stock gapping up 15% on an earnings beat might be bought on a break above its pre-market high of $25.00, targeting further upside continuation.
Risk & limitations
Gaps frequently fill (reverse) partially or fully during the session, and inexperienced traders chasing the initial move can suffer outsized losses if momentum stalls.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.