Gap (Chart Pattern)
A gap is defined equally an unfilled infinite or interval. On a technical analysis chart, a gap represents an expanse where no trading takes place. On the Japanese candlestick chart, a window is interpreted equally a gap. In an upward trend, a gap is produced when the highest toll of i twenty-four threescore minutes menstruum is lower than the lowest toll of the next day. Thus, inwards a downward trend, a gap occurs when the lowest toll of whatsoever i twenty-four threescore minutes menstruum is higher than the highest toll of the adjacent day. For example, the toll of a part reaches a high of $30.00 on Wednesday, as well as opens at $31.20 on Thursday, falls downwards to $31.00 inwards the early on hour, moves straight off upwards in i trial again to $31.45, as well as no trading occurs inwards betwixt $30.00 as well as $31.00 area. This no-trading zone appears on the nautical chart equally a gap. Gaps tin give the sack play an of import role when spotted earlier the kickoff of a move...