Gap Analysis

Gap is the difference between yesterday’s closing Price and Today’s opening price. Gap analysis gives the idea of the strength and Phase of the trend. Gaps appear due to multiple factors such as global conditions, after hour news, results and so forth. Gaps are named based upon where they occur whether occurs in trending area or non trending area. Various types of Gaps are as under. 1. Area Gap 2. Breakout Gap 3. Runaway Gap 4. Exhaustion Gap