Drawing on the knowledge of experienced Wall Street swing and day traders, Warrior Trading enables investors to consistently take advantage of market fluctuations. The active professionals at Warrior Trading employ diverse strategies, including momentum, reversal, and gap and go.
A disciplined approach to shorting stocks, gap trading involves actively seeking out those stocks displaying a significant price gap from the previous close. Warrior’s gap-and-go strategy employs Trade-Ideas scanners in identifying gappers. This is followed by a look into the catalyst for the gap. Pre-market highs are marked, with an emphasis on finding stocks that hold the upper end of the gap and are not being sold off prior to the opening bell.
An order is prepared for stocks that meet specific criterion, aligned to pre-market highs. During the first minute, opening-range breakout (or candle) gappers are purchased, with stops placed on the low of the candle.
Reasons for this strategy being successful, with an opening bell squeeze occurring despite previous gapping, has to do with the event catalyst that has often just occurred. Retail traders are anxious to jump onto a stock that is already trending upward, secure in the knowledge that further gains can often be realized in the first half hour of trading.
