Gap Down Continuation
Gaps down 4%+ and closes below the open (weak follow-through).
Exact criteria (as backtested)
| Universe | S&P 500 + Nasdaq 100 (current members) |
| Price | > $5 |
| 20d avg $ volume | > $5M |
| Gap | ≤ −4% |
| Close vs open | Close < Open |
Backtest · 2021-10-13 → 2026-10-12
How we testEqual-weight trade curve (weekly, 1.0× = start). Each signal held 5 sessions; daily return = mean of open positions. No fees, slippage or taxes. Survivorship-biased universe. Not indicative of future results.
Copyable platform settings
Gap % ≤ -4, Change from Open < 0ta_gap=d4,ta_changeopen=d(open/close[1]-1)<=-0.04 and close<openFinviz strings are URL filter codes (append to finviz.com/screener.ashx?v=111&f=). ThinkorSwim strings are thinkScript scan conditions. Platform equivalents may differ slightly from the backtested definition; verify before use.
Most recent signals in backtest
How the Gap Down Continuation screen works
The Gap Down Continuation screen is a gap setup: gaps down 4%+ and closes below the open (weak follow-through). A stock qualifies on a given day when every condition is true at the close: gap ≤ −4%; close vs open Close < Open. To keep results tradable, only S&P 500 and Nasdaq-100 members above $5 with more than $5M of average daily dollar volume are included.
Across 518 tickers from 2021-10-13 to 2026-10-12, the screen fired 2,271 times on 439 different stocks. 53.9% of signals were higher five sessions later, ranking #6 of 25 screens on SetupHits by hit rate. The average 5-day move was +1.47% (median +0.53%), ahead of SPY's +0.45% over the same days, and the equal-weight trade curve's worst drawdown was -33.8%.
Setup is copy-paste: TradingView, Finviz, ThinkorSwim versions are listed above. In TradingView use the string in the Stock Screener filter or a Pine condition; in Finviz append the filter codes to the screener URL; in ThinkorSwim paste the thinkScript into a Stock Hacker custom study filter. Platforms compute indicators slightly differently, so expect small differences in the hit list.
Treat these numbers as context, not a forecast. The backtest uses daily bars, ignores commissions and slippage, overlaps signals on the same stock, and tests today's index members back in time, which adds survivorship bias. A mostly rising 2021–2026 market also lifted most long setups.
Full test rules: methodology. Compare every setup in our ranked list of stock screeners.
FAQ
What is the Gap Down Continuation stock screener?
Gaps down 4%+ and closes below the open (weak follow-through). It is a gap screen evaluated on daily closes for S&P 500 and Nasdaq-100 stocks.
What is the Gap Down Continuation backtest hit rate?
53.9% of 2,271 signals between 2021-10-13 and 2026-10-12 closed higher 5 trading days later, with an average 5-day move of +1.47% and a max drawdown of -33.8%.
How do I set up the Gap Down Continuation screen in TradingView, Finviz or ThinkorSwim?
Copy the platform string on this page: TradingView, Finviz, ThinkorSwim settings are provided. Results can differ slightly because each platform calculates indicators its own way.
Is the Gap Down Continuation screen good for day trading?
It is an end-of-day screen measured over a 5-day hold, so it suits swing trading or building a next-day watchlist more than intraday entries. Past, simulated results do not predict future returns.