Stock trading – “How to trade shares – Gap analysis”

Gaps identify the strength of the directional movement. It will not indicate positive or negative. Appears due to difference in trading range
Area gap – Gap appears in the non trending area between the demand and supply zone, expect gap to be filled. If not filled it means the counter party is not powerful enough
Breakout gap -Gap appears out of the range, it qualifies for a breakout gap, volume should be high during breakout day. Gap should not be filled
Runaway gap – Gap appears after the breakout. Gap should not be filled. Trend is strong
Exhaution gap – Gap appeared at day open and disappeared on EOD. It indicates a major selling pressure. Indicates the close of the existing trend