I'm in the early stages of trying to analyse the one day performance of mining stocks that gap up - either driven by an announcement or not.
I'm looking for meaningful statistics in the relationship between a number of factors, including the % of the initial gap up, the intraday high, low and close prices, and the nature of the stocks trend prior to the gap up.
In other words I'm trying to find gap up stocks that have the highest probability of a positive outcome when buying into the gap.
For example on the 10th Sept, EMU gapped up 75% from a pullback while trending up, with no news, but then only made another 5% gains before it retraced and then closed below the gap up price.
Conversely on the 11th Sept, ADN gapped up 21% from a previous trending high, on an announcement, and then went on to make a further 27.5% gains before settling back to finish even on the day.
When I analyse 100 stocks, I'll see if I can devise some intraday trading rules for entry/stop loss/exit for these gap up situations.