Kinnari_Prajapati
Education

Basic of Gap theory(Common gap, Breakaway gap, Runaway, Exhaus )

NSE:BANKNIFTY   NIFTY BANK
Gaps can offer evidence that something important has happened to the fundamentals or the psychology of the crowd that accompanies this market movement.

Gaps can be subdivided into four basic categories:

• Common gap
• Breakaway gap
• Runaway/ Continuation gap
• Exhaustion gap

--------------------------------------------------------------------------------------------------------------------------------

--> Common gap-:
Common gaps generally occur uneventfully or when there is nervousness among the investor and has low volume, generally gap is filled in the future.

--> Breakaway gap(Measuring gaps)-:
A breakaway gap is those which have high Volume and the chances are more to cover the gap. The traders who have invested in the wrong side need to cover them. A new change in the market has taken place. The point of news breakout becomes support or resistance.

--> Runaway gap-:
runaway gap has increased in liquidation and those who are holding the position will get panic and sell/buy. the runaway gap is caused by the trading limit imposed by the exchanges.

--> The exhaustion gap (Island-cluster)-:
exhaustion gap happens near the end of the movie. Mainly have a high volume and have a large difference from the previous price, in this state of panic long down move is transpire due to a feeling or belief that bad things will happen. exhaustion gap quickly fills a gap when price reverse.

I will update shortly Real-Time use of Gap Trading Strategy shortly. Kindly comment, if you have any questions/suggestions for me. You can share your LOVE by giving LIKES.
Comment: Correction : RUNAWAY GAP (I have written "increased buying interest ") but it should be as "Interest of investors/trader buying/selling increased"

Comments

Can you explain with chart?
+10 Reply
Kinnari_Prajapati himanshusaraswat40
@himanshusaraswat40, I didn't get you.
+6 Reply
pramudb himanshusaraswat40
@himanshusaraswat40, already explained in chart
Reply
Very Nicely explained. Your effort for educating traders have emotional value which is priceless. I AM requesting you to provide the detail information to learn the Gap Theory.
+1 Reply
Kinnari_Prajapati falgunprajapati1
@falgunprajapati1, Once again thanks, and I will surely update and publish real-time practical use of gap theory shortly.
+4 Reply
Pure technical super knowledge I really admire your great skills.
Reply
can see gap filling between 22500-25500????
Reply
Thank you. Please update real-time practical use of gap theory.
Reply
Thank you very much , need more updates and knowledge about Gap
Reply
Good knowledge but one thing is that common people have to know the technical facts ten only they will be able trade profitably.your recommendation should for next trading day
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out