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If a stock gaps up in pre-open due to an event, does it usually continue going up after market opens? Here’s the analysis about #imtraday #gaptrading 
To validate if a gap up stocks would continue to move up after market opens, we need to backtest it with huge data sets. I have considered data from 2007 to 2019, taken all gap up stocks, gap is calculated by
(Today’s Open price - Previous Close price)/Prev close price.
(Today’s Open price - Previous Close price)/Prev close price.
I get the list of gap up stocks.
Once I get this list, then I calculate what is the % intraday movement. That is Open to close. So again I calculate the returns
(Today’s close price - Today’s open price)/Today’s open price
Once I get this list, then I calculate what is the % intraday movement. That is Open to close. So again I calculate the returns
(Today’s close price - Today’s open price)/Today’s open price
