when No trade happens in a particulat price range it would be shown as Gap in the candle stick chart. GAP is named based on their occurrence in the chart/ price pattern. Tyes of GAP are Area GAP, breakout GAP, Run away GAP, Exhaustion GAP. Area GAP occurs in between the support and resistance and it gets filled soon. It occurs above the resistance zone and if it occurs along with volume it may rally further. It occurs above the resistance zone and it further get accelerates due to square-off the short position and if it occurs along with volume it may rally further. It occurs above the resistance zone and it dont further get accelerates because of the exhaustion and results in bearish candle formation after a GAP UP open.
Recently Active Members
Bullish View
Bearish View
-
Bearish-GAP-SHORT-BICON-25-10-2019 October 25, 2019
-
FEDERAL BANK – BEARISH ENGULFING October 17, 2019
-
Cummins India – Bearish Engulfing – 24Sep19 September 25, 2019
-
Day29-Tata Motors DVR – Bearish Piercing – 12Sep19 September 12, 2019
-
Day27-Bearish-Engulfing pattern-Tech Mahindtra-09Sep19 September 10, 2019
Hi,
Your Query 1 :: How to place stop loss for the GAP?
We don’t recommend to trade on gaps
Your Query 2 :: How important it is in Intraday trading
Gaps occur in all scenarios and we can predict the market sentiment by using gaps.