Gaps occur when prices jump in response to a sudden imbalance of buy or sell orders. A scary piece of news often triggers gaps. Gaps on daily charts show reactions to events that took place while the market was closed. Had the news come out during trading hours, a gap might have occurred only on intraday charts and perhaps have led to a wider daily range.
Types of Gaps are :-
- Filled Gaps
- Common Gaps
- Exhaustion Gaps.
- Breakaway gaops
- Run away Gaps
- Continuation Gaps
