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GAP TRADING: How To Use Gaps To Find Huge Stock Moves
Whenever traders see a gap on the chart they feel a compulsory need to find out the name behind it. They ask themselves.1. Is this a measuring gap?2. Is this a breakaway gap?3. Is this a common gap?4. Is this an exhaustion gap?What they should be ideally asking themselves is1. What is this gap trying to tell me?2. Who created this gap, The Bulls or The Bears?3. Does this gap have the potential to give me huge returns in a relatively short period?The answers to these questions are discussed in this book in detail. This book will unlock the power of a single, simple, easy-to-spot but brilliantly effective gap trading strategy. This strategy works for both short-term and long-term trades. We will see multiple charts with detailed explanation so that the strategy and psychology get deeply ingrained in your mind. With little practice you will be able to identify the setup in seconds and will profit from the resultant explosive move.So, embrace the strategy that simplifies your trading journey while maximizing your returns. Get ready to harness the power of a single gap trading strategy that changes the game- forever.
- GenresFinance
61 pages, Kindle Edition
Published August 28, 2023
155 people are currently reading
41 people want to read
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Displaying 1 - 19 of 19 reviews
July 18, 2025
Author said "..I do not believe in information overload", but he don't mind almost 90% overlap of information among all his books 😮💨.
Success - Most of the time moves off a gap are explosive, appreciating 40-70% within a month or doubling or tripling within a few months.
- The Gap Trading setup is so strong that 7 out of 10 times your initial stop loss will not be touched at all. But it’s your discipline during the remaining 3 instances that will decide your fate as a Gap Trader
A Gap is considered closed or filled only when the price comes back to the closing price of the previous day of gap formation.
Strategy:
1. Filter stocks with a 3% gap up with 3x average volume (Buy Range breakouts for best returns - stock gaps above a major resistance level - known as Breakaway gaps)
3. Never buy on the gap day and never buy gaps that run into major resistance levels
4. If you buy at Gap 1, you can always add more at Gap 2.
Entry - Buy 1 point above the high of the gap day, whenever it happens (either on the next day, a few days later, or sometime in the near future)
SL - 1 point below the low of the Entry day’s candle
Trailing SL - below low of each higher candle
Fix percentage exit - initial stop loss of 10% And Good Till Cancelled ( GTC ) order 15 to 20% above their purchase price.
Always in profit exit - 50% exit at 10%, raise SL to your purchase price on the remaining 50% and exit at 60-70 percent in profits in a short-term trade.
Success - 70% (The Gap Trading setup is so strong that 7 out of 10 times your initial stop loss will not be touched at all)
screener link:
https://chartink.com/screener/gap-up-...
Success - Most of the time moves off a gap are explosive, appreciating 40-70% within a month or doubling or tripling within a few months.
- The Gap Trading setup is so strong that 7 out of 10 times your initial stop loss will not be touched at all. But it’s your discipline during the remaining 3 instances that will decide your fate as a Gap Trader
A Gap is considered closed or filled only when the price comes back to the closing price of the previous day of gap formation.
Strategy:
1. Filter stocks with a 3% gap up with 3x average volume (Buy Range breakouts for best returns - stock gaps above a major resistance level - known as Breakaway gaps)
3. Never buy on the gap day and never buy gaps that run into major resistance levels
4. If you buy at Gap 1, you can always add more at Gap 2.
Entry - Buy 1 point above the high of the gap day, whenever it happens (either on the next day, a few days later, or sometime in the near future)
SL - 1 point below the low of the Entry day’s candle
Trailing SL - below low of each higher candle
Fix percentage exit - initial stop loss of 10% And Good Till Cancelled ( GTC ) order 15 to 20% above their purchase price.
Always in profit exit - 50% exit at 10%, raise SL to your purchase price on the remaining 50% and exit at 60-70 percent in profits in a short-term trade.
Success - 70% (The Gap Trading setup is so strong that 7 out of 10 times your initial stop loss will not be touched at all)
screener link:
https://chartink.com/screener/gap-up-...
May 22, 2024
Straight To The Point
The approach taught here is very insightful. It also appears to be very applicable.
His teachings seem to be the most clear, concise, and effective education I've received on trading since I started learning about the topic 3 years ago.
I've read many books on the topic of trading. I've spent thousands of dollars on one trading course.
Yet, his simple books pack more power than most books or trading courses I've completed because he doesn't overwhelm you with information.
If you want to understand GAP trading, get this book. It is a jewel.
I also highly recommend his book on Volume Trading and his book, The 20 EMA.
The approach taught here is very insightful. It also appears to be very applicable.
His teachings seem to be the most clear, concise, and effective education I've received on trading since I started learning about the topic 3 years ago.
I've read many books on the topic of trading. I've spent thousands of dollars on one trading course.
Yet, his simple books pack more power than most books or trading courses I've completed because he doesn't overwhelm you with information.
If you want to understand GAP trading, get this book. It is a jewel.
I also highly recommend his book on Volume Trading and his book, The 20 EMA.
September 14, 2024
Gap Trading Simplified
The author does exactly what the title of the book says. You are shown how one method if trading with gaps can work.
He doesn't claim this to be the only method, just one that works, and suggests you to back test and paper trade to confirm it works for yourself.
I like the concept of keeping it simple and only focusing on one method. It doesn't clutter your head with too many thoughts, which is detrimental to performing any task well.
I may look at some of his other titles to refresh and focus my trading skills.
The author does exactly what the title of the book says. You are shown how one method if trading with gaps can work.
He doesn't claim this to be the only method, just one that works, and suggests you to back test and paper trade to confirm it works for yourself.
I like the concept of keeping it simple and only focusing on one method. It doesn't clutter your head with too many thoughts, which is detrimental to performing any task well.
I may look at some of his other titles to refresh and focus my trading skills.
November 20, 2023
Easy to understand and clear.
The book is easy to read and the author's concepts are clear.
The author uses the Indian market as an example, but I'm sure it would work for the US and other international markets as well. I will test this strategy on the US stock market starting tomorrow.
The book is easy to read and the author's concepts are clear.
The author uses the Indian market as an example, but I'm sure it would work for the US and other international markets as well. I will test this strategy on the US stock market starting tomorrow.
December 3, 2023
I wish I read this book years ago
Jayesh Shah’s shares one of the best kept secret strategies in a straight forward manner with his direct and simplified explanations. I read his three books and this one offers the best strategy that suits my short to midterm goals.
Jayesh Shah’s shares one of the best kept secret strategies in a straight forward manner with his direct and simplified explanations. I read his three books and this one offers the best strategy that suits my short to midterm goals.
February 5, 2025
great strategy
I’ve read all of Jayesh,s books, and I think this one is probably the easiest of them to put in to practice. So simple and clearly set out with examples of what could go wrong as well as what should go right..
The hardest part as usual is sticking to the rules.
I’ve read all of Jayesh,s books, and I think this one is probably the easiest of them to put in to practice. So simple and clearly set out with examples of what could go wrong as well as what should go right..
The hardest part as usual is sticking to the rules.
September 21, 2025
Gap Entries
A good read for those who are just starting to learn GAP Trading. Excellent entry levels and stop losses are explained.
I'm looking forward to reading his other books!
A good read for those who are just starting to learn GAP Trading. Excellent entry levels and stop losses are explained.
I'm looking forward to reading his other books!
October 11, 2023
Simplified Strategy
Author has simplified concepts and also I liked the way he kept the size of the book short, so that it easy to read and recollect.
Author has simplified concepts and also I liked the way he kept the size of the book short, so that it easy to read and recollect.
November 8, 2023
Amazing
Yet again....the book is simple and to the point.
Simple strategies are the best
Clearly defined rules with entry and exits.
Yet again....the book is simple and to the point.
Simple strategies are the best
Clearly defined rules with entry and exits.
January 24, 2024
Its a short and Simple Book with very good Learning.
February 12, 2024
Excellent easy to read and apply book
Easy to understand
Easy to practice
Effective simple strategies that you can make work instead of getting bogged down in plethora of theory
Easy to understand
Easy to practice
Effective simple strategies that you can make work instead of getting bogged down in plethora of theory
February 20, 2024
Simply Superb
All the Authors Books are Short, Sweet and Simple.
I have bought all his Books.
Thanks to the Author.
Expecting more books from Author.
All the Authors Books are Short, Sweet and Simple.
I have bought all his Books.
Thanks to the Author.
Expecting more books from Author.
March 3, 2024
Simple and clear
Very clean approach ready to apply concepts, must read for new traders . Great real life examples to guide you as you learn.
Very clean approach ready to apply concepts, must read for new traders . Great real life examples to guide you as you learn.
March 25, 2024
Nice strategy
Good one, I like this strategy. Good one, I like this strategy. Carry on .Good one, I like this strategy.🙂
Good one, I like this strategy. Good one, I like this strategy. Carry on .Good one, I like this strategy.🙂
June 22, 2024
Good concepts
I agree with Mr. Shah this book gives you plenty to build on. It was concise with good explanations on the charts. Nicely done sir.
I agree with Mr. Shah this book gives you plenty to build on. It was concise with good explanations on the charts. Nicely done sir.
May 29, 2025
another good one
I really enjoyed this one. As usual the author kept it extremely simple and did not focus on 10 things. Just remember the simple rules and execute.
I really enjoyed this one. As usual the author kept it extremely simple and did not focus on 10 things. Just remember the simple rules and execute.
December 19, 2025
good new
This entire review has been hidden because of spoilers.
December 22, 2025
Great content bo fluff!
Greats collection of books by the author explaing meat of content with simplicity without fluff. Well done on excellent job and best wishes!
Greats collection of books by the author explaing meat of content with simplicity without fluff. Well done on excellent job and best wishes!
March 24, 2024
Silver lining in a dark cloud
Yes! This is exactly how I am feeling after I read the book again, the second time. It has given me hope to see success in my trades. Thank you for this amazing easy to follow book.
Yes! This is exactly how I am feeling after I read the book again, the second time. It has given me hope to see success in my trades. Thank you for this amazing easy to follow book.
Displaying 1 - 19 of 19 reviews