How to name a GAP? What are Four Types of GAP?

[EQSIS]

How to name a GAP? What are Four Types of GAP?

[Abirami Duraisamy]

There are area GAP, breakout GAP, runaway GAP and exhaustion GAP.

Area GAP: The GAP appears between demand and supply zone with low volume.

Breakout GAP: The GAP appears during a breakout with high volume.

Runaway GAP: The GAP appears after the breakout and while moving in the trend with significant volume.

Exhaustion GAP: The GAP is created at the start of the day(starting price is much higher than the previous day’s highest price) in the trending area but gets closed by end of the day with Red body(in case of Bearish) with high volume.

[Pradeep]

A gap in a chart 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 four types of GAP are : –

1. Area Gap or Consolidation

2. Break out GAP

3. Runaway GAP

4. Exhaustion GAP

[V.VEDANAYAGAM]

The names and their locations /features of the four types of GAP are as follows
(1)AREA GAP The GAP that forms WITHIN THE TRADE AREA (ie in between the support and resistance) of the stock.
Here the volume is low and the GAP is filled soon

(2)BREAKOUT GAP
The GAP that forms BEYOND THE TRADE AREA of the stock
Here the volume must be HIGH
IF the GAP occurs ABOVE / BELOW the RESISTANCE / SUPPORT level then BEGINNING of the BULLISH / BEARISH trend is confirmed

(3)RUNAWAY GAP The GAP that forms AT THE TRENDING AREA of the stock
Here the volume must be HIGH
This is the BOOSTING phase of the existing BULLISH/BEARISH trend
(4)EXHAUSTION GAP The GAP appears at THE TRENDING AREA exactly at THE OPENING OF THE DAY in the existing BULLISH/BEARISH trend but gets FILLED at END of the day due to profit booking
Here it is the end/exhaustion of the existing BULL/BEAR trend

[bhavani]

The four types of gaps are Area gap, Breakout gap, runaway gap and Exhaustion gap.

Area gap: Gap occurs in the trading range

breakout: Gap that occurs during breakout.

Runaway: Gap that occurs when the sellers  are forced to buy back.

Exhaustion: Gap occurred during the opening got closed during the same day.

[Author]

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