Gap Analysis is Used to identify strength of market, Rally strength. Not a directional indicator, tells if trend is moving with strength or lacks strength. Helps to locate current phase of strength, ie once manage to locate , can tell if we are early in trend or broken out or running away of trend or termination of trend. Appears because of difference in trading range.Naming the gap is important to identify strength. Use Candle stick to identify gap.
Gap Analysis
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Stock Analysis
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