EQSIS PRO

GAP THEORY -KNOW-HOW

when No trade happens in a particulat price range it would be shown as Gap in the candle stick chart. GAP is named based on their occurrence in the chart/ price pattern. Tyes of GAP are Area GAP, breakout GAP, Run away GAP, Exhaustion GAP. Area GAP occurs in between the support and resistance and it gets filled soon. It occurs above the resistance zone and if it occurs along with volume it may rally further. It occurs above the resistance zone and it further get accelerates due to square-off the short position and if it occurs along with volume it may rally further. It occurs above the resistance zone and it dont further get accelerates because of the exhaustion and results in bearish candle formation after a GAP UP open.

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