An earnings gap analysis tool that identifies three types of stock price jumps after earnings reports, marking key price levels and tracking potential outperformance windows.
Explore complementary indicator rolesHow it works
The Earnings Gap Ups Indicator tracks three distinct gap types: Power Earnings Gap (PEG), Monster Gap, and Monster PEG, each with specific criteria for price movement and trading volume. Each gap type requires different thresholds, such as price gains of 10-20% and volume significantly above the 50-day average.
The indicator not only identifies these gaps but also marks critical price levels like high volume close, gap day high and low, and potential support zones. By analyzing these levels, traders can map out potential trading strategies during the crucial 'alpha window' when stocks tend to outperform following an earnings announcement.
Why it may be useful
Earnings gaps represent moments of significant market sentiment shift, where institutional investors and traders rapidly reassess a company's valuation based on unexpected financial performance. By systematically identifying these gaps, traders can potentially capitalize on rapid price movements and market inefficiencies.
The indicator provides a structured approach to understanding post-earnings price behavior, offering traders a methodical framework for evaluating stock momentum. It transforms seemingly chaotic price jumps into analyzable patterns, helping traders make more informed decisions during periods of high market volatility.
When to explore it
The Earnings Gap Ups Indicator is most effective immediately following quarterly earnings reports when stocks experience significant price movements. Traders should focus on stocks with substantial volume spikes and meaningful earnings surprises that meet the specific gap criteria.
This signal works best for actively traded stocks with high liquidity and regular earnings reporting. Traders should combine this indicator with other technical and fundamental analysis tools to validate potential trading opportunities and manage risk during these high-volatility periods.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
