Before I write anything, I want to say my reviews, comments and explanations will obviously differ from many but this is work in progress and it's important to me to journal and review my trades. Feel free to leave comment but please let it be a constructive.
I am working on a Gapper strategy that I learned from Ed Martin ( @AverageJoeTradr) on his Blog He has had good success and he only started with 800 dollars and turned it to 9K in 6 months. I can identity myself with him and his style of trading.
I am not good in explanation as he is, but I will try. This is mostly for my own review but hopefully someone else can get some insight.
Look for the gappers that are more than 5%. I use this website to look for pre-market gappers. Make a list of at least 2-4 best set-ups per-market in terms of volume and chart. I use ThinkorSwim for charting. After the first 15 min, draw two lines, one on high of the first 15 min and one on the low of the first 15 min (These will be in 5 min time-frame) as shown below. Then watch for the stock that is close to breaking the upper line for long or lower line for short. Then I put this stock on watch on my main screen and look for entry.
TPLM - long (The green arrows indicate buy and red arrows indicate cover or sell)
I was early on this stock and should have waited for the 6.20 break and hold. Second entry was close enough in anticipation of the break but the stock spike with a big red candle on the 5 min that stopped me out only to come back and break the 6.20 ish entry according to plan.