A gap is defined as an unfilled space or interval. On a technical analysis chart, a gap represents an area where no trading takes place. Conversely, in a downward trend, a gap occurs when the lowest price of any one day is higher than the highest price of the next day
There are four types of gaps: common, breakaway, runaway, and exhaustion, as well as a gap pattern called an island reversal. Common Gaps. Common gaps provide no significant analytical insight, and are regular occurrences. Breakaway Gaps. Assets prices move in ranges or trends. Runaway Gaps. Exhaustion Gaps
A gap is defined as a price level on a chart where no trading occurred. When you are looking at gaps on a stock chart, the most important thing that you has already occurred, these are amateurs buying the stock – look to short. The advantage is that you can sometimes make big profits, quickly, and with a little less risk
1) Area gap will appear inside the trading range. 2) Area gap may be field in near term. 3) The volume during the gap day is generally low.
Breakout gap: When the price moves up from the trading range and gives a breakout with a gap with a high volume. This gap may not be filled. Runaway gap: When the price breakout from the trading range, the sellers are forced to buy back hence increasing the demand. The gap may not be filled
A runaway gap is a gap of 5% or more that occurs in the direction of a trending price. It is characterized as a runaway gap because of the timing of its occurrence. It is also typically associated with high volume trading supporting the gap. The image shows a gap in the middle of a large upward movement.
Exhaustion Gaps. Exhaustion gaps are those
Step 8
feel free to call us +919500077790 info@eqsis.com
Stock Analysis
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 |
8 | 9 | 10 | 11 | 12 | 13 | 14 |
15 | 16 | 17 | 18 | 19 | 20 | 21 |
22 | 23 | 24 | 25 | 26 | 27 | 28 |
29 | 30 |
Bullish View
Bearish View
- Bearish-GAP-SHORT-BICON-25-10-2019 October 25, 2019
- FEDERAL BANK – BEARISH ENGULFING October 17, 2019
- Cummins India – Bearish Engulfing – 24Sep19 September 25, 2019
- Day29-Tata Motors DVR – Bearish Piercing – 12Sep19 September 12, 2019
- Day27-Bearish-Engulfing pattern-Tech Mahindtra-09Sep19 September 10, 2019
How this forum help stock traders?
Stock Trading is business, the success depends not just on capital or subscribing advisory services or participating workshops. The factors such as your awareness level about business, Efforts and your contributions, Smartness, Knowledge in analysis and trading instrument, availability of infrastructure and emotional control determine your success.
Hi,
Your work is good.