Gap analysis

  • GAP is the difference in the trading range, which can be seen using candlesticks charts. The chart will indicate a GAP in the candlestick view. GAP indicates the strength of the trend and helps to locate whether the trend is at early stage, breakout stage or at terminating stage.

  • Consolidation(Area GAP): The GAP appears between demand and supply zone(non trending area) with low volume, the GAP might appeared due to external support and will get filled in near term. This does not signify the strength of the buyer or seller.

    Breakout: The GAP appears just after the breakout area with high volume indicates the strength of buyer(in bullish scenario)/seller(bearish scenario). this indicates the start of the trend. This GAP will not be filled and shows the forward trend.

    Runaway: The GAP appears on the trending area after breakout point with significant volume.

    Exhaustion:
    current opening is much higher than previous highest price but gets filled during the day with high volume and no GAP is seen by EOD

  • gap represents an area where no trading takes place means a market gap is the difference between the closing price of one period and the opening price of the next period

  • Consolidation(Area GAP): The GAP appears between demand and supply zone(non trending area) with low volume, the GAP might appeared due to external support and will get filled in near term. This does not signify the strength of the buyer or seller.

  • Breakout: The GAP appears just after the breakout area with high volume indicates the strength of buyer(in bullish scenario)/seller(bearish scenario). this indicates the start of the trend. This GAP will not be filled and shows the forward trend.

  • Runaway: The GAP appears on the trending area after breakout point with significant volume.

  • current opening is much higher than previous highest price but gets filled during the day with high volume and no GAP is seen by EOD

1 Comment
  1. Naresh 2 months ago

    Hi,
    Good explanation.

Leave a reply

©2022 | Rights Reserved | EQSIS | Terms and ConditionsPrivacy Policy

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

Log in with your credentials

Forgot your details?