What do we interpret using GAP ANALYSIS?

[Pradeep Nadarajan]

In gap analysis we can analyse the strength of the existing trend and where we are.

[Ubeidulla]

GAP Analysis indicated the strength of the trend.

If earnings are higher than expected, the investors may place order for the next day. This could result in price opening higher that the previous day’s closure.

If the trading continues on that day above that point, a GAP will exist. It offers evidence that something important has happened which reflects in market movement.

GAP can appear BW Friday’s close and Monday’s open. BW last day of the month close and first day of next month.

GAPS are significant development in price action and chart analysis and should not be ignored.

[Livya]

Using gap analysis we determine the strength of bullish or bearish trend

[Manikandan]

gap analysis shows bullish or bearish trend.

[Hema]

Candlestick chart is preferred for GAP analysis, helping us to understand price difference on short term

[Author]

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