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This topic contains 256 replies, has 252 voices, and was last updated by  Divya E R 9 months ago.

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  • #81143
     canute 
    Participant
    Rank: Level 3

     

    Gap analysis is used to interpret the Strength of the market.

    #81379
     vasanth 
    Participant
    Rank: Level 4

    Gap analysis used to determine the strength of the market trend

    #82470
     Ranjani Arumugam 
    Participant
    Rank: Level 5

    1. Tells you about the strength of the trade. if there is aggressive buying or lack lustre buying.

    2.Gap analysis helps to locate the correct phase of the strength; if you are in in the early stage or you are in a trend which has just broken out, or in a trend which is terminating.

    A gap appears because of the difference in the trading range.

    #82881
     Aravind S 
    Participant
    Rank: Level 3

    <span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>With gap analysis we can see the trend and the market direction. If the gap analysis is within the trading range it called as area gap and this has no significance. If there is a bullish breakout gap then this indicates the buy signal. If there is a runaway gap all the more it is a positive sign and signal to go for a buy. When we come across an exhaustion gap that indicates the end of a trend and it is time to sell and book profits of already bought stocks and strong signal for short sell.</span>

    #82885
     Aravind S 
    Participant
    Rank: Level 3

     
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>These gaps helps to understand the trend easily.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Area Gap:</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>It appears with in the trading range.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>This gap can be filled.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Here the volume is evenly low.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Breakout Gap:</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>It is the starting point of Bullish trend,which is away from trading range.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>This gap cannot be filled.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>The volume is High.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Runaway Gap:</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Runaway gap is faraway from the trading range.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Here the buyer has to buy.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>This gap cannot be filled.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>The volume is evenly high.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Exhaustion gap:</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>This is trend reversal gap(Bearish),since the point is at top,comes down during the day itself.</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>The volume is high(sellers continuously sells).</p>
    <p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Gap is filled.</p>

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