A gap is empty space between one price bar and the next. Gaps occur when the price significantly changes from the close of one price bar to the next, with no trading taking place in the empty space between the bars.There are area GAP, breakout GAP, runaway GAP and exhaustion GAP.
Area GAP: The GAP appears between demand and supply zone with low volume.
Breakout GAP: The GAP appears during a breakout with high volume.
Runaway GAP: The GAP appears after the breakout and while moving in the trend with significant volume.
Exhaustion GAP: The GAP is created at the start of the day(starting price is much higher than the previous day’s highest price) in the trending area but gets closed by end of the day with Red body(in case of Bearish) with high volume.
