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Gap analysis shows the trend of the market whether it is beginning of the trend or the end.
The strength of the market can be identified using GAP Analysis. It also indicates the phase of the trend.
Using GAP analysis we can find the strength of the market. It will say that the price are moving up is because of aggressive buying or it is moving down because of aggressive selling etc., It helps to locate the correct phase of the trend ie early stage, breakout stage, runaway stage etc.,
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