Content deleted Content added
m Bot: Migrating 1 interwiki links, now provided by Wikidata on d:q4153227 |
Altafqadir (talk | contribs) |
||
Line 11:
==Types of gaps==
There are four different types of gaps, excluding the gap that occurs as a result of a stock going [[Ex-dividend date|ex-dividend]]. Since each type of gap has its own distinctive implication, it is very important to be able to distinguish between such gaps.
* '''Breakway gap''' : It occurs when prices break away from an area of congestion. When the price is breaking away from a triangle (Ascending or Descending) with a gap then it can be implied that change in [[sentiment]] is strong and coming move will be powerful. One must keep an eye on the volume. If it is heavy after the gap is formed then there is a good chance that market does not return to ''fill the gap''. When the price is breaking away on a low volume, there is a possibility that the gap will be filled before prices resume their trend.
| |||