One of my favorite setups in the market is the post earnings gap (PEG)
After a company reports, the stock will often gap up or down on heavy volume.
That gap reflects new information being priced in and usually attracts institutional participation.
This often creates new trends in the stock if there is a big surprise in the earnings
My favorite setup on the PEG looks like this:
-High volume gap
-Declining volume pullback
-8 EMA tap
-Continuation in direction of gap with volume
You can either buy in on the 8 EMA tap or look for the break of the tight consolidation base
Even in this choppier market condition the best winners as of late have come post-earnings
$FSLY $DELL $YOU $AMPX
Your goal is to add these gapping stocks to a watchlist and then wait for the tight setup to form near the 8 ema
From there I'm looking to get an entry into these names and ride the momentum of the PEG
If you don't have a gappers list you are missing out on a ton of potential A+ setups.
To find these:
You can use https://t.co/HRXltqCD1d
click on screener:
-Earnings Date → Today / Yesterday
-Gap % → Greater than 3–5%
-Volume → Above Average
-Relative Volume → >1.5 or 2
Every earnings season I recommend doing this:
-Scan earnings movers daily
-Save the best charts
-Track them for 2–10 day continuation moves
Many of the biggest momentum trades come from earnings catalysts that create sustained demand.