How I Trade Morning Gaps

Strategy Vault
1

Here’s one of my go-to intraday setups for volatile sessions: the Gap and Fade.
Simple rules:

  1. Stock gaps up >2% from previous close.

  2. No major positive news.

  3. RSI above 70 on 5-min timeframe within first 30 minutes.

  4. Short when momentum stalls (doji or rejection candle), target 1-1.5% move back to VWAP

I don’t trade it daily, only when volume is abnormally high at open

Posting this here for newer traders to backtest or tweak. Would love to see variations on this if anyone’s running similar open setups

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