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Gap Fade

 
Europe

Not every gap up holds. When a stock opens sharply higher and then sells off below the open, early buyers are trapped and the move can unwind. This screen lists stocks on European exchanges that opened more than 3% above yesterday's close but now trade below today's open on at least 1.5 times average volume. Short sellers fade such gaps toward the previous close; long traders use the list to avoid chasing weak openings. Prices are in euros, and the list covers stocks traded on Xetra, Euronext Paris, Euronext Amsterdam, Euronext Milan and the Madrid Stock Exchange with at least 0.5 million euros in average daily trading value.

Screening formula:
exch(xetra,bme,mil,par,ams) and type(stock) and advol(21) > 0.5 and gapup > 3 and c < o and rvol(21) > 1.5 and sortby(gapup, desc) and show(gapup as gap_pct, rvol(21) as rvol)
 
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   Symbol   Name   Industry   Sector   Exchange   Cap  Cap, mln  Last  Change  Change, %  Volume  Gap_pct  Rvol
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