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Consolidation- it is also known as area gap.gap formed inside trading range.
Break out-gap formed in upper trend and shows break out with gap withnessed by volume
Run away-it is the post break out gap.here the buyer has to buy with high volume
Exhausion-gap appeared in a day and close within a day or next day.it is sign of early termination of trend
Consolidation – also called Area GAP. First, we should qualify the recent price action as trending or non-trending. Any GAP that appears inside non-trending area is area GAP. We expect the gap to be filled soon. Volume during this gap day is low.
Breakout – Appears during the beginning of the new trend i.e.,when price give breakout from its trading range. Volume should be high. This gap may not be filled in near term.
Runaway – After giving Breakout, while moving forward, Runaway gap appears. This gap may not be filled in near term. The close should be at its day’s High during runaway gap. Volume should be distributed evenly during the day.
Exhaustion – If the runaway gap gets filled on the same day, then it can be considered as Exhaustion gap. The close should be at its day’s Low during this gap. This gap appears after a significant rally. Volume should be very high during the day to terminate the existing trend.Consolidation :
It is also known as area gap
It normally appears inside the trading range.
Area gap filled in near term
The volume during the area gap will be low
Breakout gap:
Breakout gap appears only when price give break out from its trading range.
Gap maynot be filled in near term
Volume during the gap day will be very high.
Runaway gap:
After the breakout the runaway gap takes place.
Area gap may not be filled in near term
Close should be at its day’s high during runaway gap
Volume will be evenly distributed during the day.
Exhaustion gap:
It seems like a runaway gap,but the gap filled on same day
The close should be at its day’s low
The volume will be very high during the day
Area GAP:
This area GAP is basically found between the demand and supply zone with low volume.
The GAP will likely be filled really soon and therefore representing that it does not depend on the buyer and the seller.
Breakout GAP:
This GAP is found in the breakout area with humongous volume.
This volume indicates the strength of the Buyers/sellers.
The GAP might not be filled that easily.
Runaway GAP:
This GAP can be found in the breakout points with humongous volume.
This GAP signifies the fight from the buyer/seller side.
This GAP might not be filled and may result in a same trend.
Exhaustion GAP:
This GAP is mainly found after the previous days highest is filled by the next days opening.
This GAP is filled in mere time with large volume and likely to be filled at the same day.
Four types of GAP analysis, it help to locate the phase of trend
Area Gap: Area Gap appear inside non trading zone, and never know that who is powerful buyer or seller, the stocks are trading between the demand and supply zone so this are belongs to both parties. If the breakout is not filled than buyers are not to strong to fill this GAP.
Breakout Gap: Breakout Gap appear during the beginning of the new trend and volume should be high. On next day if the price out of the range its nothing but breakout, you can use this as buy signal because its moving out of range. This gap will not be filled, as the bullish rule the trading.
Runway Gap: Runway gap appear after breakout, it may extend the rally due to unwinding of existing positions. More buyer are there, even though the volume is not too high. Trend remains strong and expect to move further.
Exhaustion Gap: The stock open with major gap, but it close the entire gap on the same day. Gap is not visible.
The people who bought the stock they are selling
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