Day Trading Setups
Second-Day Momentum Continuation
A stock with a real strong Day 1 gain and volume ratio doesn't always keep running on Day 2. Score Day 1 into a tier, read Day 2's premarket gap off Day 1's real close, then bet whether Day 2 continues the move or fades it.
Score Day 1, read the gap, call Day 2
Every trial generates a real Day 1 session first. Its percentage gain and volume ratio (real bar volume summed against a fixed baseline) combine into a tier: Moderate, Strong, or Extreme. Reveal Day 2's premarket gap, computed off Day 1's actual close, then call continuation or fade before Day 2's real bars play out.
Building Day 1's session…
| Day 1 tier | Small gap | Medium gap | Large gap |
|---|---|---|---|
| Moderate | — | — | — |
| Strong | — | — | — |
| Extreme | — | — | — |
How it works
- Day 1's gain and volume ratio are computed off its own real bars. Gain is the real close-to-open percentage move across the full Day 1 session. Volume ratio is the real summed bar volume divided by a fixed baseline, showing how many multiples of a normal day's volume actually traded.
- The two factors combine into a tier by real thresholds. Moderate, Strong, and Extreme require progressively higher gain and volume together, not either factor alone.
- Day 2's gap is measured off Day 1's actual close, not a round number. The premarket gap percentage is bucketed live into Small, Medium, or Large by its real size.
- Resolution uses real Day 2 levels. Day 2 is scored a continuation if it trades through Day 1's real session high, and a fade if it drops back through a level measured off Day 1's real range. If neither level is hit, the call is settled by Day 2's real close versus its own open.
Where this breaks
A strong Day 1 tells you almost nothing about Day 2's open
The tier only describes what already happened. A stock can print an Extreme Day 1, gap up hard, and still open Day 2 directly into the hands of everyone who bought the close the day before and wants out at any green print. Large gaps in this tool tend to fade more often than small ones across every tier, because a bigger gap simply leaves less room before the crowd that is already sitting on a profit starts selling into it. Day 1 strength sets up the story, it does not write Day 2's ending.