This topic contains 254 replies, has 252 voices, and was last updated by  Divya E R 9 months ago.

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  • #5313

    What is called as GAP in technical analysis?

     Abirami Duraisamy 
    Rank: Level 5

    GAP is the difference in the trading range, which can be seen using candlesticks charts. The chart will indicate a GAP in the candlestick view. GAP indicates the strength of the trend and helps to locate whether the trend is at early stage, breakout stage or at terminating stage.

    Rank: Level 4

    In a technical analysis chart, a gap represents an area where no trading takes place. It is is essentially an empty space between one trading period and the previous trading period.

    The GAP is formed when there is a large-enough difference in the opening price of a trading period where that price and the subsequent price moves do not fall within the range of the previous trading period.

    Rank: Level 5

    WHEN the day RANGE of a stock related to any TWO adjacent days does NOT over lap then GAP is said to be formed

    (a) IF the TOP of the FIRST DAY candle is BELOW the BOTTOM of the NEXT DAY candle


    (b)IF the BOTTOM of the FIRST DAY candle is ABOVE the TOP of the NEXT DAY candle
    then it is called GAP

    Rank: Level 7

    The difference in the trading range is called as a gap in technical analysis.

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