The Simple Gap Scalping Strategy I Use Every Day to Trade Momentum Stocks

Day trading doesn’t need to be complicated to be profitable.

In fact, one of the most consistent strategies I’ve used over the last several years is so simple that most traders overlook it. It’s the first scalping strategy my father taught me, and it’s one I still trade every single day.

The foundation of this strategy is straightforward:

👉 Trade stocks that are already moving — and let the market do the hard work for you.

This article breaks down how to find high-momentum stocks before the market opens, how to identify high-quality gap setups, and how to execute simple, repeatable trades once the market opens.

My Scalping Strategy is BORING, but it makes me $45,833/Month

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Why Momentum Is Everything in Day Trading

The biggest mistake new traders make is trying to force trades in stocks that aren’t moving.

If a stock is:

• Sideways

• Illiquid

• Low volume

…it’s almost impossible to make consistent money.

That’s why this strategy focuses on stocks that gap overnight — stocks that already have:

• Strong momentum

• Heavy volume

• A reason to move

You’re not predicting movement.
You’re reacting to it.

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What Is a Gap (And Why It Matters)?

A gap is an overnight change in price between:

• The previous day’s close

• The next day’s open (or pre-market price)

Example:

• Stock closes at $10

• Opens the next morning at $12

• That 20% overnight move is a gap up

Gaps happen because of:

• Earnings

• News

• Analyst upgrades

• Macro events

• Unexpected catalysts

The reason doesn’t matter.

What matters is what that gap does to supply and demand.

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Why Gaps Create the Best Day Trades

Gaps work because they shock one side of the market.

• Short sellers suddenly underwater

• Longs chasing momentum

• New traders piling in

• Institutions repositioning

That imbalance often leads to:

• Big volume

• Strong trends

• Clean intraday setups

This is why many of the biggest intraday runners start with a gap.

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How to Scan for Gap Stocks (Free Tools)

You don’t need expensive software to find gap stocks.

Free Options:

• TradingView

  • Use the stock screener

  • Enable pre-market data

  • Sort by pre-market gap percentage

• Market Chameleon

  • View pre-market gainers

  • Pre-market decliners

  • Most active stocks

Trading Platforms:

• Thinkorswim

• Any scanner that shows mark % change

Each morning, the goal is simple:

Build a watchlist of stocks that have a high probability of moving today.

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The 3 Rules for High-Quality Gap Ups

Not all gaps are worth trading.

Most are noise.

Here are the three criteria that separate high-quality gaps from low-quality ones.

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Rule #1: The Gap Ends a Downtrend

The most powerful gap is one that breaks a longer-term downtrend.

Why?

Because it:

• Traps short sellers

• Forces covering

• Flips sentiment instantly

When sellers are suddenly wrong, momentum can explode.

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Rule #2: The Gap Clears Key Resistance

Another high-quality setup is when a stock:

• Consolidates near resistance

• Gaps just above that resistance

This triggers:

• Daily breakouts

• Weekly breakouts

• Institutional momentum

⚠️ Bigger isn’t better.
The best gaps clear resistance by a small margin, not far above it.

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Rule #3: Volume Confirms the Move

A gap without volume is meaningless.

High-quality gaps show:

• Massive pre-market volume

• Heavy volume at the open

• Sustained interest throughout the day

Volume confirms that real money is involved.

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How to Trade the Gap After the Market Opens

A great gap alone isn’t enough.

You need a clean intraday setup.

If there’s no setup, you don’t trade.
Period.

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Simple Intraday Setups That Work

I keep trading extremely simple.
These are the only setups I use:

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1. Opening Range Breakout (High-Low)

• Wait for the first candle to form

• Entry: Above the high

• Stop loss: Below the low

Best timeframe:

• 5-minute chart (less noise, fewer fakeouts)

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2. Breakout After Consolidation

• Stock gaps up

• Moves higher

• Forms a tight base

• Entry above the base

• Stop below the base

This is one of the highest probability setups in momentum trading.

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3. Pullback / Retracement Setup

• Stock moves up

• Pulls back into support (often the 20 MA)

• Entry on confirmation

• Stop below the pullback low

This setup allows:

• Better risk-to-reward

• Cleaner entries

• Less emotional trading

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Why Selectivity Is Everything

Here’s the truth most traders don’t want to hear:

👉 I pass on over 90% of gap stocks every day.

Even if a gap looks great:

• No setup = no trade

• Sloppy price action = no trade

• Poor structure = no trade

One good trade is enough.

Overtrading kills consistency.

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Losing Trades Are Part of the Game

Even the best setups fail.

Stops get hit.
Trades don’t work.

That’s normal.

What matters is:

• Controlled risk

• Consistent execution

• Emotional discipline

The strategy works over time, not on every trade.

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The Real Edge of This Strategy

This gap scalping strategy works because it:

• Trades momentum, not predictions

• Aligns with volume and sentiment

• Keeps risk defined

• Avoids low-probability setups

• Is repeatable every single day

It’s not flashy.
It’s not complicated.

It’s effective.

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Final Thoughts

If you’re struggling with day trading, simplify everything.

Focus on:

• Stocks that gap

• High-quality price action

• Clean intraday setups

• Discipline over excitement

You don’t need dozens of indicators.
You don’t need constant action.

You need one solid strategy executed well.