Gap represents an area where not trading takes place. Normally this happens between the close of the market on one day and the next day’s open. It can form on a Daily, Weekly or Monthly but can be considered significant only when accompanied with higher than average volume. Gaps indicates one of the 3 trends:
– The beginning of a trend
– Conclusion of a trend
– Continuation of a trend
Gaps can be converted into trading opportunity/Strategies.