Trade Like an O'Neil Disciple

Gap-ups can be bought at the beginning of the trading day, since the

strongest names will often continue higher that same day after they gap-up,

This is one basic rule of gap-up breakouts—they

negate or “exonerate” any negative or weak action in the base

“violation” is defined as a close below the 10-day moving average followed by a move on the next day below the intraday low of the first day.