GAP represents an area where no trading takes place.In an upward trend, a gap is produced when the highest price of one day is lower than the lowest price of the following day
Type of GAPS
1)Area Gap
2)Breakout gap
3)Runaway gap
4)Exhaustion gap

  • : a gap represents an area where no trading takes place.In an upward trend, a gap is produced when the highest price of one day is lower than the lowest price of the following day
  • : the four types of gap are: 1)Area gap:The GAP appears between demand and supply zone with low volume. 2)breakout gap:The GAP appears during a breakout with high volume 3)runaway gap:Gap that occurs when the sellers are forced to buy back 4)exhaustion gap:The gap appears after a trending zone, opened at top at the time there is a gap and the same day got filled is called Exhaustion gap
  • : GAPS appear on charts when there is a important event or news occurs which affects the security. Overnight risks occur when a news or event which affects the security occurs after closing of the market. It has gap impact on the price of security on the next trading day.
  • : Area gap will appear between demand and supply zone.Area gap may be field in near term.The volume during the gap day is generally low.
  • : when the price moves up, a gap appeared while moving out of range with high volume is a breakout gap.this is the start of a new bullish trend
  • : this GAP occurs when the sellers are forced to buy back.Post breakout the runway scenario , take place, runway gap appear inside this area.The volume is distributed evenly during the day
  • : The gap appears after a trending zone, opened at top at the time there is a gap and the same day got filled is called Exhaustion GAP. the gap appear after a trending zone seems to be runaway gap,but if it gets filled on the same day then it can be considered to be exhaustion gap the close should be at its days low the volume should be very high during the day to terminate the existing trend
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