Gap is a sudden movement of price up or down. It is like climbing a ladder by skipping some steps up or down. It indicates the strength and weakness of the market.
The types of gap are Area Gap, Breakout gap, Runaway gap, Exhaustion gap.
Area Gap: Appears between demand and supply with low volume.
Breakout gap: Appears during breakout with high volume.
Runaway gap: Appears in trending zone after breakout and there is a further gap.
Exhaustion gap: Appeared at day open, closed entire gap in same day.