Gap analysis is an essential tool of technical analysis.it is an area of discontinuity where no trading takes palce. It appears on chart when there is important news or event which affects the security. Overnight risks can occur due to these events, and can be seen in next trading day. It indicates strength. Gap is named depending on its nature and where it gets formed. There are 4 types- Area gap, Breakout gap, Runaway gap and exhaustion gap