In this study of the GAP analysis we comer across the different types of GAPS and their condition and characteristics of the GAP and different trend indictors using the Also the four types of GAP Area GAP, Breakout GAP , Exhaustion GAP and Runaway GAP

  • : Using GAP analysis we can able to identify the strength of the market and directional movement of the price it helps us to locate the phase of the trend
  • : Four types of GAP Area GAP - GAP between yesterdays trading range and todays trading range appears on the non trending area is area GAP Runway GAP-After giving breakout and moving forward it opened with high that is sellers are running away from the zone Breakout GAP-price range moving out of the range is breakout GAP followed by a good volume it happens in the beginning of the new trend Exhaustion GAP-appeared during the day and and closed end of the day is exhaustion GAP and major selling pressure takes place and it will terminate the existing trend
  • : The GAP appears in charts to identify the market strength due to aggressive selling or buying then you can able to recognize the early stage of the trend and appears due to different trading range
  • : The Area GAP the Volume of the area GAP may be low and traded between demand and supply zone and it formed because of external global ques and it appears in the non trending area
  • : The breakout GAP appears out of the range and followed by a good volume and forms a breakout GAP and it appears in the beginning of the new trend and this gap should not be filled as long as the GAP is open the buyers are aggressive
  • : Runaway GAP indicates the uptrend may appear after breakout it may extend the rally due to unwinding or existing positions and sellers are running away from the market and expected to move further
  • : When the stock is opened with a major GAP and closed within the day it needs the better understanding of demand and supply and it got appeared in the EOD it can appeared in the trending or non trending condition it can also terminate the trend

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