TC2000 Gap Down Recovery Scan
TC2000 Gap Down Recovery Scan is designed to identify short-term overreactions in stocks that gapped down below previous lows but managed to close the session strong near highs.
The TC2000 gap down recovery scan is a great way to take advantage of near-term weakness in a stock that has been trading in a long-term uptrend.
How does it work
This scan looks for stocks that have been trending higher in a long-term uptrend and then saw a sudden gap down below the previous day’s lows followed by an intraday reversal and a strong finish on the day.
The scan will return small gap downs starting at just 1% below the previous day’s lows as well as large gap downs that could be caused by earnings or some other market catalyst.
What’s important however is that the stock’s intraday selling pressure is reversed, signaling the move to the downside may have been initially overstated. This setup lends itself well to a gap-fill target (if it did not fill on day 1) and well-defined placement for stop losses (the bar lows).
The gap down recovery scan is designed for daily time-frames.
- Purchase includes exact PCF code and setup instructions
- Purchase includes additional recommended scan criteria:
- Minimum daily volume
- Modifications to the trend filter
- Can be used on all versions of TC2000
- Can be combined with other criteria to improve accuracy
- Stack the odds in your favor by using this scan against our weekly curated TR150 watchlist
Any questions? Contact us.
Get a discount when you purchase this Gap Down Recovery Scan and its bear version equivalent in the Bull Bear Gap Bundle package.