FAQs Frequently Asked Questions

The 6-day rule says that after a BGU, if the stock trades for 5 days then on the 6th day or later breaks below the low of the gap up day, the porosity which is the amount of room given for the stock to undercut the low of the gap up day should be minimal to zero. Normally, porosity for a stock that has gapped up is 1-2%, though contextual to the volatility of the stock.