A Gap is an area on a price chart in which there were no trade happened. Area gap, also called as ‘Common gap’ or ‘Trading gap’ is appearing in the trading zone. Such Gap is noticed in the charts of HPL Electric & Power Ltd on 8th Apr 2019 and 20th May 2019.
These gaps are qualified with the following points.
1) Area gap is appearing between Demand & Supply zones in a trading range.
2) The area gaps are filled in the near future.
3) The volume during the gap day is usually low. But in the cases noticed in the chart, both the gaps are identified with high volumes. So this is called ‘Area Gap with Volume’
