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Setups - Gap Up

Overview​

The Setups - Gap Up profile highlights stocks that opened above the previous day's high and also meet additional breakout conditions. These are not just any gap-up names. They must also show stronger long-side context, such as a resistance break, a move out of tight range compression, or a confirmed 3-day breakout pattern.

The result is a more focused list of gap-up setups where upside structure, volatility, and participation are already working together.

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This profile updates in real time and applies filters automatically to surface liquid gap-up setups with breakout confirmation, favorable risk/reward, and a clearer path to the projected target. It can be used across all market sessions, but is especially relevant during pre-market and early regular market hours.

Strategy Focus​

  • Identify gap-up setups that opened above the previous day's high
  • Focus on names with confirmed breakout context such as resistance clearance, tight-range expansion, or 3-day breakout patterns
  • Prioritize setups with favorable upside risk/reward and fewer barriers to resistance on the way to target
  • Narrow review to liquid, volatile stocks that can follow through after the gap
  • Combine strategy metrics, volume confirmation, and group strength to refine long-side ideas
  • Build watchlists around clean upside continuation setups rather than random strong opens

Filters Applied​

This profile applies multiple layers of filters to keep the results focused on gap-up setups with stronger upside context:

  • Liquidity Rating > 70, ATRP 14D ≥ 0.5, Volatility (Month) ≥ 1: Ensures the stock is liquid and active enough for long setups to follow through cleanly.
  • AI - Alpha Strategy = Long: Requires MarketAlpha to detect a long-biased setup.
  • AI - Risk/Reward ≥ 2, AI - Path to Target ≤ 1: Keeps only setups with strong upside potential relative to risk and limited barriers between price and target.
  • Gap Hi/Low (%) > 0: Requires the stock to open above the previous day's high.
  • Gap To Res/Sup Contains R, Tight Range = Yes, 3 Days BreakOut/Dn = Breakout: Requires at least one structural trigger that reinforces the gap-up setup.

These filters keep the profile centered on gap-up names with confirmed breakout conditions and cleaner upside structure.

Metrics Used​

Strategy Metrics​

  • AI - Alpha Strategy: Shows whether MarketAlpha currently identifies the setup as long-biased.
  • AI - Risk/Reward: Measures the projected upside relative to the stop.
  • AI - Path to Target: Counts how many key barriers remain between price and the projected upside target.

Price Action and Breakout Context​

  • Change Pre Market (%): Shows whether strength is already expanding before the regular session.
  • Change From Close (%): Tracks current strength relative to the previous close.
  • RSI Divergence 14 Days: Adds momentum context and can reinforce improving conditions.
  • Universal Pattern Detection: Adds bullish pattern confirmation.
  • Tight Range: Helps show whether the setup is breaking higher out of prior compression.

Volume, Liquidity, and Activity​

  • Volume All Hours: Confirms total participation across all sessions.
  • Relative Volume: Helps show whether the gap-up move is supported by stronger-than-normal activity.
  • Dollar Volume Rank: Keeps the most liquid and actively traded names near the top.

Group and Relative Strength Context​

  • Industry Rating 1 Day, Theme Rating 1 Day: Show whether short-term group action is also strong.
  • Industry Rating 1 Year, Theme Rating 1 Year: Add broader group context behind the move.
  • Relative Strength 1 Day, Relative Strength 1 Year: Help compare short-term and long-term strength.

Fundamentals and Timing​

  • MarketAlpha Rating: Composite view of overall technical and fundamental quality.
  • EPS Rating, Sales Rating, Profit Rating: Help show whether the long setup is also supported by stronger business performance.
  • Accumulation/Distribution Score: Tracks institutional flow, where stronger readings can reinforce upside pressure.
  • 52 Week High (%): Shows how close the stock is to its yearly high, which helps frame breakout potential.
  • Next Earnings In Days: Adds timing context around possible catalyst risk.

Default Sorting Logic​

Results are sorted by Dollar Volume Rank (ascending) to keep the most liquid and active gap-up setups at the top.

Practical Use Cases​

  • Find gap-up setups with stronger breakout confirmation
  • Focus on long candidates that opened above the prior high and still have a cleaner upside path
  • Monitor resistance breaks, tight-range expansions, and 3-day breakouts in one focused view
  • Build watchlists around liquid stocks with fresh upside continuation conditions
  • Strengthen long-side review with volume confirmation, group strength, and strategy metrics
  • Use Multi-Charts to validate gap behavior, breakout context, and upside follow-through