Dow theory and price patterns can identify the trend and price movement. Gap helps us to under stand to strength of the trend and price movement to rally or fall.

Gap can help us to understand the phase of the trend, like beginning of trend, broken out running away of termination of trend.

It appears due to difference in trading range

Some to the gaps discussed includes

area gap
breakout gap
runaway gap
exhaustion gap

1 Comment
  1. Naresh 5 years ago

    Hi,
    Thank you for sharing the detailed information with us

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