GAP is the difference in Previous day’s closing price and Current day’s Opening Price. It gives the idea of the trading phase / trend .Gaps can be named by the phase it occurs.
4 Types of GAPs: Area Gap, Run Away Gap, Break out Gap, Exhaustion Gap.
Gap happens because of positive/negative news in any industry/company will have positive / negative impact on the share price while the market opens., which becomes the deciding factor of the market price.
1. It happens in Non Trending Area.
2 Usually, the gap gets filled up.A breakout gap indicates the presence of strong sellers or buyers in the market who are changing or establishing the trend of the market. The gap should appear outside the non trending area of the market. The volume should be high.
Hi sir,
your answers are brief and appropriate.