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Tagged: Gap
A gap is a space formed in the trading range which helps in knowing the trend whether it is bearish or bullish by its variations in candlesticks manner.
a gap represents an area where no trading takes place
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.
The difference in the trading range is called as a gap in technical analysis.
On a technical analysis chart, a gap represents an area where no trading takes place.
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