Strength of the market can be analysed by GAP analysis
It’s not directional Indicator of the Market
It helps us locate the current Phase of Trend
Where you are in the trend can be understood by GAP
Trading Range can be understood
Once we name the GAP 90% of the job is done
Line chart does not help – Candlestick is the ideal way to see a GAP
There are 4 types of GAPS:
Area GAP – Before construction
Breakdown GAP – Go up
Runaway GAP – outside elements
Exhaustion GAP – Early sign of trend termination
