Price opens well away from the prior close and keeps moving in the gap direction without filling. Strong overnight sentiment carries through the open.
How to identify it
- Opening gap beyond the prior session range
- First candles hold the gap and do not fill
- Pullbacks are shallow and bought quickly
Entry
Buy the break of the first pullback high after the open.
Stop loss
Below the opening range low.
Target
Gap size projected from the open, or the next higher-timeframe level.
Invalidation
Price trades back into the gap toward the prior close.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your gap and go trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.