Mall Cop Gives Away Golden Goose
An EP needs to be a gap of 10%+ and big volume should be there, if not in pre-market then the first 5-10 minutes after the open.
Big volume. If the volume is not there in premarket, it needs to come in at the open. Many times the best ones have traded their average daily volume in the first 15-30 minutes after the open.
What is an EP? My definition (this may differ from Pradeeps) is a gap up of 10% or more. There has to be massive volume near the open, ideally the stock should trade the average daily volume the first 15-20 minutes or even quicker. Preferably the huge volume is already present in after-hours or pre-market. That is not always the case though.
I rarely trade in extended hours but prefer to wait for the opening range highs, which means I will wait for the first 1-minute candle to form and closely observe the volume. Sometimes the big volume may come a few minutes after the open on the smaller cap names. Ideally there is heavy volume right out of the gate and I enter once the opening range highs break and many times if i bought the 1-minute highs I may add on the 5-minute highs also to get more confirmation and more size.
Volume is the #1 thing to focus on.
Pay attention to the volume.