During intraday analysis we can easily identify the trend using the gap analysis.
- : A gap is a discontinuous space in the price chart of an asset or security, often occurring between trading hours.
- : We should name particular gap based on at which area does it exist. 1.Area Gap 2.Breakout gap 3.Run away gap 4.exhaustion gap
- : After the market hours surprise news. If the news is good it makes up trend else it creates the down trend
- : Occurs inside the common area. Volume should be low Gap may be filled
- : Occurs outside the common area Volume should be high Gap may or not be filled.
- : Gap appears after the breakout gap. Gap may not be filled. Volume should distributed evenly.
- : Gap appears after the trending zone. Close should be low Terminate the existing trend.