Lately I have been thinking of a new strategy (someone may already do it) that I will be monitoring and watching to see how it works out. If anyone has any idea's or tips please feel free to share them.

Many of you who are in the penny room know that gaps are not what they use to be. Honestly the R:R is just not there anymore for gap plays. To me, taking a gap play regularly is gambling and I hate when people associate trading with gambling.

For anyone who has been in the penny room you know that I enjoy playing low priced $NASDQ for quick flips or swings. Normally with my strategy I do not trade 1st thing in the AM. I let the stock and chart establish trends and channels that I can trade on break outs or continuations of up trends. The problem with this is that in the open there isn't much to play unless you buy stocks after they break the 1st 5 minute candle or you buy on a dip.

This plan I am working on will allow me to do multiple trades within the 1st 15-20 minutes of the trading day. I am setting up a scanner that looks for gap downs. For anyone who follows gap plays on $NASDQ you will notice that around 75%-85% of the time they move in the opposite direction of the gap. My plan is to find these gap downs pre-market, watch a handful of them, then, buy and then sell for a quick flip even if we're only talking 5 cents.

Now, while I am working on this I will be looking for a common trend in stock that gap down and then continue to fill or partially fill that gap. One way would be to wait for the 1st 5 minute candle high to be broken. I am thinking there should be some other things to look out for as well.

Let me know if you have any suggestions or things to look out for. I like this idea since it will allow me to trade the 1st 30 minutes of the day for quick flips while I allow my other trades to set up.