Clear filters25 patterns
RKLB·gap-reversal·2026-10-15-0.6
RKLB gap-reversal chart

Space company delayed the first launch of its Neutron rocket, 10% gap from the news. Also, it's been downtrending, which makes the gap even better. It has a quick spike at the open and starts to capitulate. The volume wasn't the best, but it looked right to me at the moment. Got in as it broke above the previous bar's high, and after some time going back and forth on price action, I decided it wasn't working. It should immediately push higher if it was going to work. So I got out for half my risk. Later on, it finally capitulated with big expansion bars and great volume. Sold half as it pushed close to the start of the drop and the rest as it finally broke the previous low. Only added the first trade to the stats, where I got faked out. The other trade had a clearly better outcome, with a 3.3 risk-reward, but both looked good. The first one wasn't as good because of the lack of volume.

bad-newscapitulation
SKHY·gap-reversal·2026-10-15+1.3
SKHY gap-reversal chart

10% gap as the whole sector starts to sell off and companies start to look at China to manufacture. This one offered 2 trades, both of them variations of the same strategy. There was a lot of premarket volume too. That activity makes it a better candidate for a trade. 1: Breaks out of premarket consolidation, comes back a bit to consolidate, and breaks out again. That's the entry. Sell half as it does the initial push and the rest at the low of the previous bar as it loses momentum. I actually missed this one because I had another trade at the time, but that doesn't change the fact that it was a great opportunity. 2: This is the one that I got to trade. It lost momentum and started to form higher lows with the pullback. Once it broke the high, I got in. Sold half as it started to reach the high of day and the rest as it lost momentum.

bad-newsstrong-sectorhigher-lows
WDC·gap-reversal·2026-10-13+2.3
WDC gap-reversal chart

Sympathy play for this news. Both chip and storage stocks went down: Chinese memory chip advances raise competition concerns, so semis in the US dropped as they might be behind on the newest tech. 7.1% is great, uptrending earnings too. It didn't dip the way I was expecting, but instead it made a quick push, pulled back a bit, and I took my entry there, with a stop at the low of the pullback. I sold half at the last high, and I was hoping it would consolidate above the breakout and then push again, so I had a tight stop for it and got out almost at the same place.

bad-newsstrong-sectorhigher-lows
MU·gap-reversal·2026-10-13+1.9
MU gap-reversal chart

Chinese memory chip advances raise competition concerns, so semis in the US dropped as they might be behind on the newest tech. 5.5% gap on a trillion-dollar market cap company is a good gap, plus they have uptrending earnings. My original idea was to buy the breakout of the premarket consolidation, but it didn't materialize. Instead, it started to hang around the bottom price for a long time, so the theory was to get in as it broke out of that consolidation. As it goes up vertical without any pullbacks I sell half at the top of the bar and the rest on a tight stop as it does the same for the next bar.

bad-newsstrong-sector
ALHC·gap-reversal·2026-10-09+1.9
ALHC gap-reversal chart

Their biggest Medicare contract got a decreasing rating, creating a 20% gap. Before the news, it had uptrending earnings. It's also one of the 2 current strong sectors. Premarket volume was already bigger than on regular trading days. It starts to drop a bit in premarket, capitulating right at the open. It kept consolidating below my entry on the way up, so I waited for it to break from it. I sold half as it makes its first big push, and the rest at the top of the same bar, since I thought a bigger pullback is coming because it went up too fast.

bad-newscapitulationstrong-sector
TMUS·gap-reversal·2026-10-09-1.0
TMUS gap-reversal chart

Incredible 9.3% gap on this and other comms companies as SPCX starts to buy infrastructure to get into the space, since it's well positioned with its internet service. It has uptrending earnings, but the fact that it's been downtrending for so long is not a great sign. It starts to capitulate with decent volume right before the open, and as it starts to bounce with volume, there is a good entry. I was out a few minutes later since it didn't keep going a bit more like T did on the same day.

capitulationbad-news
T·gap-reversal·2026-10-09+0.6
T gap-reversal chart

Incredible 10% gap on this and other comms companies as SPCX starts to buy infrastructure to get into the space, since it's well positioned with its internet service. It capitulates in premarket and keeps going a bit more after market open, with volume rarely seen on this ticker. I wait for it to start bouncing off the last premarket bar to get in. Sold some as it approached the premarket support and tried to trail the rest, but I got stopped out. I didn't want to give it too much room since it didn't seem to want to keep going. Too much indecision around the marked level.

capitulationbad-news
UMC·gap-reversal·2026-10-05+0.6
UMC gap-reversal chart

They are raising 1.8B for equipment and reinvest in the general business, which is good but they are doing it through a convertible bond, diluting shares in the future. 9.4% gap is great, however, this ticker tends to gap a lot, so you have to be cautious. The gap was near a recent low, which could act as a pivot point. What I did like was that it was on a recent strong uptrend, so if it gaps down, my logic is that it tends to continue the trend. At the end of premarket, it started to go up, so I was thinking of getting in on a second push after it pulled back on a strong open. Instead, it dropped right before open. I wouldn't say it capitulated, but it started to bounce, and I got in near the end of the bar. Sold the first half quickly, as I didn't love the setup, as mentioned before. Sold the rest on the low of the bar.

bad-newsstrong-sector
STX·gap-reversal·2026-10-02+1.8
STX gap-reversal chart

One of its competitors increased the supply and quality of the product, and people took it as a bad sign for this company. Huge 13% gap on the lower end of the range, great earnings uptrend, strong sector and volume. Even the volume in premarket was pretty significant. It capitulates at the open, and I get in on the bounce. The stop was not at the previous bar low because I felt it was too tight and wanted to give it a bit more breathing room. Sold half as it was reaching premarket resistance, and the rest once it broke the latest bar's low.

bad-newscapitulationstrong-sector
MRNA·gap-reversal·2026-09-30+2.3
MRNA gap-reversal chart

It gapped 8.3% after Citi downgraded them to sell. It has a lot going in its favor: uptrend, recent good news with a Phase 2 vaccine, uptrending earnings, and it's in a strong sector (health tech). So even though it wasn't a huge gap, with all of those points in its favor, I wanted to see how it behaved after open. It made a nice small resistance level in premarket. I didn't want to trade it immediately, so I waited for the second bar. I waited almost until the end because it was indecisive around the same level, pulling back and breaking out from it. In the last minute of the bar, I got in on the breakout with a stop a bit below the low that shouldn't be touched if the trade was going to work. I got out in 2 parts as the price was going vertical without any pullbacks.

bad-newsstrong-sector
VKTX·gap-reversal·2026-09-24+1.4
VKTX gap-reversal chart

Overnight offering at 35. Promising weight loss drug results, but inconclusive. 13.5% gap is massive, taking into account that the last 3 days have been quite volatile, and with the volume, it had potential for a good reversal. I don't want to call it a capitulation because it was only one big red bar reversing what made me want to get in. It was mostly the recent volatility, with the reversal after the red bar. Get in after it makes the double doji on the way up. I didn't want the stop too tight based on the entry, so I had it a bit lower than the open of the bar. Sell half as it pushes and the rest if price comes back from the low of the bar, which it did.

bad-newsstrong-sector
ERIC·gap-reversal·2026-09-22+4.0
ERIC gap-reversal chart

5.2% gap with steady earnings. Fell after news of a drop in sales and rising component costs. It starts to capitulate in premarket, consolidates a bit on the second bar. Also, the fact that SPY was falling as this started to consolidate on the way up gave me confidence because it wasn't falling with SPY. Take that as an entry with a tight stop. Sell half as it makes the second push, and the rest when it loses momentum.

bad-newscapitulation
NFLX·gap-reversal·2026-09-18+1.8
NFLX gap-reversal chart

5.6% is already significant for this market cap. It got downgraded because of viewership trends going lower. Earnings are stable, which is not a bad thing. Gapping close to a support zone. It starts by capitulating right at market open. It starts to reverse by the end of the first bar and consolidates for a while. Take an entry when it breaks from that. Sell half as it pushes higher into the open, and sell the rest or trail as it consolidates a bit and pushes again.

bad-newscapitulationstrong-sector
VRT·gap-reversal·2026-09-14+1.3
VRT gap-reversal chart

7.7% gap is pretty significant for this ticker. All the AI-related stocks went down because a big player asked everyone to slow down for security reasons, and it was already going down from previous days. Right before the open, it drops sharply and a bit more after market open. It starts to bounce back, and after a few seconds consolidating, there's a good entry. Sell the first half as it starts to bounce and the rest as it loses momentum. You could argue that holding it a bit longer would've paid off, but I didn't like seeing it go down all the way to my entry point.

bad-newscapitulation
NAVN·gap-reversal·2026-09-10+1.2
NAVN gap-reversal chart

17% gap after earnings because people didn't like the rising operational costs of the company. The earnings numbers were flat and it had a few red days leading to the gap. Right before the open, it starts to fall even more, capitulating 6 minutes into the open. Get in as it breaks out of the doji, indicating upward momentum. Sell half as it starts to climax and the rest if it loses momentum. If it doesn't, you can keep riding it for a bit more.

capitulationearningsstrong-sector
AEO·gap-reversal·2026-09-10+2.4
AEO gap-reversal chart

Great earnings! Despite strong earnings, it gapped down 14% because of tariff uncertainties, and people didn't like that tariff refunds helped the earnings numbers. Gapped all the way to a good resistance zone, dipping to the same price as the year-long low. It had a dip in premarket at the low of the support zone, and you can get in as it starts to bounce, risking from that low. Sold the first part as it started to get crazy, and left a stop that got filled the next bar as it lost momentum. The size of the bar was already decent for a day's range. I would not expect it to actually fill the gap that day. Daily chart for reference.

capitulationearnings
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.

capitulationearningsstrong-sector
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.

earningscapitulation
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-newsstrong-sector
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.

capitulationearnings
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.

earningscapitulation
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.

capitulationstrong-sector