In technical analysis, GAP analysis is very effective way to interpret and one can take trade based on trend setter with this GAPs, there are four types of GAPs
1. Area GAP 2. Breakout GAP 3. Runaway GAP and 4. Exhaustion GAP.
All the four GAP’s have their own characteristics and one can first spot and interpret them and take position based on the prevailing trend created because of GAP.