16 patterns
HPE·gap-reversal·2026-09-03+4.4
HPE gap-reversal chart

Massive 9% gap, even considering its current volatility. Strong sector. It just had good uptrend earnings. But it's been down for the last 5 days leading up to this day, which makes it an even better opportunity. Premarket goes down right before the open while SPY goes up. It capitulates at the open, and I get in as it starts to bounce, with a stop around the low of day. Get out fully or sell half as it fills the gap. Even before that can be acceptable, as it has already bounced a bunch, and exit the rest after momentum ends.

capitulationearnings
PYPL·gap-reversal·2026-08-28+0.5
PYPL gap-reversal chart

Strong sector for tech services. Rumors of a declined acquisition bid made it gap down. Earnings are steady and good. For a market cap this big, a 12.5% opening gap is too big. The premarket gap got as low as 18%! I waited for the price to play out and got in after it broke a 3-bar consolidation to keep going up. A gap this big usually stalls the price, so I got out as soon as that push lost momentum.

bad-news
MRVL·gap-reversal·2026-08-28+2.0
MRVL gap-reversal chart

Strong sector with good steady earnings previous night. It opened with a 6.6% gap, but the premarket low got as low as 9%!, definitely an outlier move. I wasn't sure what the plan was to trade it, but it capitulated all the way down to the -9% again, and I used that level plus the low of a similar gap a couple of days before as a stop level. As it pushed too much in a similar fashion it capitulated, same shape of the other gap that I used as support, and fearing the same behavior I sold half, and trailed the other half as it lost momentum.

capitulationearnings
HPQ·gap-reversal·2026-08-27+1.8
HPQ gap-reversal chart

Every characteristic points it should go up. It had steady good earnings the previous day. A 14.1% gap on such a big company is pretty big. It is on an uptrend on the daily chart. Tech services ir currently a strong sector. It starts to dip a bit on the open, you can enter as it bounces back up, breaking out of the pre market resistance and following the premarket uptrend. Selling half as it fills the gap and the rest when it does a bigger pullback to protect profits.

earnings
BSX·gap-reversal·2026-08-26+2.3
BSX gap-reversal chart

They are on a downtrend and previous gaps didn't bounce. Gapped because they got hacked Health tech is one of the strongest sectors right now. Long term support zone, starting to go up longer term. SPY is neutral, so nothing bad. Consolidating with decent volume on premarket. Huge 6.3% gap on pre market. The entry, as it breaks the pre market consolidation, I like the exit as it fully fills the gap within the first 2 bars, and if you want to get greedy, can set a tight stop and get stopped out almost immediately.

bad-news
WDC·gap-reversal·2026-08-06+4.6
WDC gap-reversal chart

Massive 17.4% gap on good steady earnings! Into a support zone, with a huge market cap. Cherry on top, it keeps going down until it's down 21% within the first 3 minutes of market open. Got in as it starts to bounce, risking low of day, sold 1/3 as it was reaching the opening price. Sold the rest when I saw a bigger consolidation, the range of the bar was already pretty big so didn't want to get greedy and give back profits.

earningscapitulation
AAPL·gap-reversal·2026-07-31+1.5
AAPL gap-reversal chart

It had a couple of down days before earnings day, followed by a massive 8.5% gap down! Starts off by falling even more on heavy volume. Most of the bars near the bottom are dojis, suggesting it wanted to bounce. Even if you get in late, sell half at the end of the first push and the rest as it starts to pull back, you have decent risk reward.

capitulationearnings
VXX·volatility-short·2026-07-27+1.5
VXX volatility-short chart

Really sharp move at the opening, it went vertical for some time. First short opportunity there, and covered after the high of the last bar was broken. Second short in the afternoon, SPY is consolidating - we have a push just below the morning high and start to have lower lows. I took the second trade, sold half after the first push, and the rest after breaking the high of the first green bar. SPY 5m right corner for reference.

lower-lowsquick-spike
HOOD·gap-reversal·2026-07-17+1.4
HOOD gap-reversal chart

It starts with a 5% gap, but it aggressively keeps going down, until it reaches 9% down on a 90 B cap company - that's significant. Getting in 98.7 or like me a little later gives a decent risk reward risking the low of day, but I added after the first consolidation and risking the low of it, around 99.15 and you can sell early into the next spike or wait for the next one with a bit more volume. Taking the second trade had a similar risk reward, but bigger gains. Still optional as the first trade is great in itself.

capitulation
VXX·volatility-short·2026-07-16-0.4
VXX volatility-short chart

SPY had a sharp drop and started gaining momentum back. VXX lower lows right after that and that was the entry. The bars were bigger and we had a small gap up in price on the 5m bar right before the top. Unfortunately it didn't keep going so I stoped out when we took out the previous high, taking almost half of my risk. The doji at the bottom with big volume made me want to get out early.

lower-lows
VXX·volatility-short·2026-07-13+1.0
VXX volatility-short chart

SPY had a sudden drop and I got an alert that RSI for VXX was above 70. I saw it hang around the 21.62 cents for a few seconds which made an easy entry to short into the pop and sell around 3 minutes later And this is how the SPY looked like when VXX spiked, it was a huge dip in less then 1 min

quick-spike
FCEL·gap-reversal·2026-07-08+3.0
FCEL gap-reversal chart

Offering, not good news but the 20% gap overnight on a 1.7 B cap company makes it a good setup. It started strong but I waited for a first deep before getting in. It had excellent risk reward even with a late entry. It had a few red days on the way down, finally ending on a gap to go long into. Daily chart reference.

offering
VXX·volatility-short·2026-07-07+3.0
VXX volatility-short chart

SPY started the day going vertical to the downside, after a good doji it slowed down and started making higher highs. Making a good consolidation on VXX and eventually breakdown from it, having a stop on the top of the consolidation offered a great risk reward on the trade. I got alerted on the first high and waited for it to break down from the next low. Reference SPY chart

lower-lows
BB·breakout·2026-06-25+4.0
BB breakout chart

They're a software company, right now semiconductors are going down and tech services starting to move up so not the worst sector to go long. It gapped up right on top of the consolidation on good earnings. It had 2 big moves + consolidation before this trade. Moving on top of the 10 MA and consolidation on the 20 MA. It made a double bottom while consolidating. Sold half almost at the top and the rest after it closed below 20 MA after the big drop.

gap-upearnings
INO·breakout·2020-09-06+5.0
INO breakout chart

Any pharma stock during COVID days would go up on any news. It makes a doji at the 50 MA as it steadily goes up. You can get in as it breaks the previous 2 bars' high, sell the first part and exit flat, and sell the second part as it makes a gap on the way up to prevent a gap reversal.

doji
INO·breakout·2020-05-11+2.0
INO breakout chart

Any pharma stock during COVID days would go up on any news. It had a good move up and consolidated around the 20 MA. Entry on the break of the consolidation, selling some after 3 days and the rest after breaking the 20 MA gives roughly 2x. But it did go more than 7 times the initial risk, with a stop on the low of day from the entry bar.

gap-upearnings