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Identify the strength of trend by Gap Analysis

Gap is the difference in trading range. It can easily identified in candlestick chart. It indicated the trend is moving with strength or lacking in strength.Four types of gap is there, 1. Area gap, 2. Breakout gap , 3. Runaway gap, 4. Exhaustion gap. First identify the gap and qualify the gap occured in trending or non trending area.

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