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Area gap – gap appear inside the nontrending area .low volume.
breake out gap-appear during the begining of new trend , volume should be high.
Runaway gap-appear after a breakout it may extent the rally due to unwinding of existing position.
Exhaustion gap appear after a significant rally it generally terminating the existing trend .
Area gap— appears inside trading zones, volume will be low, gap may be filled in future
Breakout gap–breakout appears after trading range, the may not be filled, traded volume will be high.
Runaway gap– occurs near the middle of an identified trend and is used to signal an increase in trend’s intensity.
Exhaustion gap—it appears after trending zone which seems to be runaway gap. It gets filled on the same day, close is days’ low, volume is very high, trend will start reversing.
Consolidation –
- The Gap appear between supply and demand zone.
- Gap is observed after a trend,
- Gap to be filled in near term.
Breakout
Gap not filled.
Moving out of range due to high volume.
Runaway
Here the before the breakout, the dominant party say sellers. Then after party the control will be taken over by buyers.
This force people to exit the trade by means of buy back.
Here, volume is not a criteria.
Exhausion
The Gap appears on the same day.
Gap closes on the same day.
Sometimes the gap closes on the next day but not beyond a day or two.
The gap appears because of buyers selling the stock and not because of the volume.
Area Gap : Occurs with in the trading range and in the non trending area. Volume will be low. May be get filled in short time.
Breakaway Gap : Occurs out of trading range. Volume will be very high. Gap may not get closed.
Runaway Gap: Sellers are becoming the buyers thus running away from their position to arrest their loss. Thus it happens after a breakout and the closure need to be the higher point of the day. Volume may be moderate and gap may not get closed.
Exhaustion Gap : It normally happens after a runaway gap. The closure should be at the lowest point of the day and the gap should get closed on the same day. Volume will be high.
area gap – occurs in non trending area , volume is low , will be filled by counter party
breakout gap -occurs when the party wins , stat forming the new trend with high volume
runaway gap – occurs when short position starts to exit by covering pattern
exhaustion gap – occurs when the runaway gap i filled on the same day
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