Gap Analysis

Gap in technical analysis chart is a space where no trade has happened in the stock.
Four types of Gap are 1. Area Gap
2. Breakout Gap
3. Runaway Gap
4. Exhaustion Gap
Area Gap will appear inside the trading range. The volume of the day will be generally low.Area gap may be filled soon.
Breakout Gap appears only when price give breakout from its trading range.Gap may not be filled soon.Volume of the day should be high.
Runaway Gap appears post breakout. Gap may not be filled soon. The close should be at its day’s high during runaway gap. Volume is distributed evenly during the day.
The Gap appear after a trending zone seems to be a Runaway Gap, but filled on the same day, then it is called as Exhaustion Gap. The close should be at its day’s low. Volume should be very high during the day to terminate the trend. It can be spotted only who knows Candle stick pattern well.