gap analysis

A gap is an area discontinuity in a security’s chart where its price either rises or falls from the previous day’s close with no trading occurring in between. Gaps are common when news causes market fundamentals to change during hours when markets are typically closed.we name gaps based on their nature and charecteristics
The four types of GAP are : –

1. Area Gap or Consolidation

2. Break out GAP

3. Runaway GAP

4. Exhaustion GAp