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Tagged: Gap
The gap between two different candle stick days is called gap.
GAP can be viewed only in candlesticks. If an empty space is seen between two candlesticks, then it is called GAP.
GAP analysis is a method in Technical analysis that is used to determine the strength of a trend. It appears because of the difference in the trading range. It is also used to determine the phase of a trend based on the position of the GAP.
GAP analysis is done on a candlestick graph. The empty spaces between the candlestick is used to determine the different phases of the GAP analysis.
A gap between two candle stick
In Technical analysis if a Gap appears inside the trading range between two candles its called an Area Gap.
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