GAP gives the actual strength of the trend. It gives the phase details of the trend. First we have to find the GAP and qualify it to take the decisions.
Area GAP will mostly get filled and no need to make to trade at this point. Breakout gap with good volume is not filled means it is in good strength. Runway gap happens due to the sellers payback and it may not have good volume. Exhaustion gap will exit the trend.

  • : GAP is the difference in two adjacent day trading. It is helpful to know the strength of the trend.
  • : By the place it happening, we can name the GAP. Four types 1. Area Gap 2. Breakdown Gap 3. Runaway Gap 4. Exhaustion Gap
  • : If the stock opening price is much higher than the previous closing price will cause a GAP. This may be due to the news, announcement about the company after market closing.
  • : -Area gap falls in Non trending area. -It gets filled by the counter party pressure doesn't have much significance. If its not filled chance to give a breakout.
  • : -Breakout gap falls in trending area. -We cannot expect the gap to be filled. -It creates new trend and the volume will be high.
  • : - It happens after breakdown in a trending zone. - Its due to the sellers buyback to exit the trade. Even volume is not high if the gap is not filled it will be strong and move significant.
  • : - It happens in trending area. - It starts after breakout with a significant price opening and due to buyers starts selling for good profit, it will come down at end of the day.Gap will get disappeared on the same day. and exit the trend.
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