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

[Dinesh]

We name it a GAP after a clear look at the price chart. GAP cannot be visible in line chart or bar chart.

It is visible only in candle sticks chart.

And also to name a GAP , check whether GAP is formed on trending zone or non trending zone.Check for conditions to qualify a GAP. After naming a GAP , 90% of work is completed.

FOUR TYPES OF GAP:

1. AREA GAP
2. BREAK OUT GAP
3. RUNAWAY GAP
4. EXHAUSTION GAP.

[JAGANATHAN]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>We name it a GAP after a clear look at the price chart. GAP cannot be visible in line chart or bar chart.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>It is visible only in candle sticks chart.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>And also to name a GAP , check whether GAP is formed on trending zone or non trending zone.Check for conditions to qualify a GAP.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>FOUR TYPES OF GAP:</p>

<li style=”box-sizing: border-box; direction: ltr; margin: 0px; width: 420.797px; float: left; list-style-type: decimal; background: none;”>AREA GAP
<li style=”box-sizing: border-box; direction: ltr; margin: 0px; width: 420.797px; float: left; list-style-type: decimal; background: none;”>BREAK OUT GAP
<li style=”box-sizing: border-box; direction: ltr; margin: 0px; width: 420.797px; float: left; list-style-type: decimal; background: none;”>RUNAWAY GAP
<li style=”box-sizing: border-box; direction: ltr; margin: 0px; width: 420.797px; float: left; list-style-type: decimal; background: none;”>EXHAUSTION GAP.

[Srinivas gupta]

• By following some conditions we can name the gap formed.It is visible at candlestic pattern only.
• Four types of gaps are                               Area gap.                                                     Breakout gap.                                             Run away gap.                                           Exhaustion gap.

[Maria Alex]

By the nature of the gap and the place where it occurs, the GAPS can be named in 5 ways.

1. Common Gap – It happens if there is a new about the company and the same will be reflected in the price. Since it is not effective this will be filled soon.

2. Break Away GAP – After the consolidation, this will form at the beginning of the new trend with significant volume.

3. Run Away Gap – It will happen at the middle of the trend with average volume, thus strengthen the trend.

4. Exhaustion Gap – Happens at the end of the trend with huge volume.

5. Island Gap – Gap at down trend and then consolidation. Again a Gap.

[Maria Alex]

It is used to identify the trend reversal and current trend’s strength.

[Author]

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