Hi f35c,

Since no one else has answered, I'll take a shot at the question.

I don't see anything wrong with your approach, but here's how I do it:

I do not like to chase. If a stock gaps past my intended buy point, I'll buy only if it looks like a buyable gap-up as defined by Chris Kacher and Gil Morales:

http://www.traderplanet.com/articles...big-gaps-aapl/
http://www.traderplanet.com/articles...p-up-strategy/

For gaps that occur at the market open, it's hard to tell whether the day's volume will be high enough to qualify, but the pre-market volume may be a clue. And I have more confidence if news or earnings are driving the gap-up.

If I do buy the gap-up, I'll place an order for any buys I missed. If the stock gapped up 5% above the pivot, for example, I'll buy a full position in one go. That's pretty aggressive, but the stock is showing real power.

The worst case scenario is I get stopped out the same day at -7%.

I have a note in my buy rule set that WON once said a gap up past a pivot should be no more than 10% above the pivot to be buyable. I don't have any examples to prove or disprove that assertion, but it's something to consider.

HTH,
Scott