Gap Analysis

gap play a very important role in technical analysis it indicate the strength, it help us to locate the trend, it happen due to trading difference. they r mainly four types of gap, area gap which appear in non trending area it have to get fill if not filled then seller a aggresive and can see fall in price, then breakout gap with give breakout from the non trending area and continue the trend it happen with increase in volume, then come the runaway gap it to happen in trending area but over here buyer r not aggressive the seller are exiting the position which make the price move up and then come the exhaustion gap which is hard to see as it is not visible, in this gap the price open with gap in trending area but by the end of the day it cover up the whole gap which indicate trend reversal