What do we interpret using GAP ANALYSIS?

[EQSIS]

What do we interpret using GAP ANALYSIS?

[Abirami Duraisamy]

The GAP analysis indicate the strength of the trend and helps to identify whether the trend is at the early stage,terminating stage or broken out. It also helps to confirm the analysis done with price patterns and candlesticks analysis on the directional movement.

[Pradeep]

Gaps are areas on a chart where the price of a stock moves sharply up or down, with little or no trading in between, it helps in interpreting the strength of the trend.

The GAP that occur at the end of a price pattern and signal the beginning of a new trend is a Breakaway gap.

The GAP that occur near the end of a price pattern and signal a final attempt to hit new highs or lows is a Exhaustion gap.

By rightly interpreting the gap formed on the chart we can determine the entry point to trade the stock and benefit out of it.

 

[V.VEDANAYAGAM]

BY GAP analysis we can find the strength of the trend
IT also helps us to locate the phase of the trend ( ie the trend is in the initial /boom /end stage)

[bhavani]

We can interpret the strength using the gap analysis. It is also used to know the phase of the trend we are in.

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