Looks like Ce Buyers trapped today. ✅

See what patience can give you
If you :
Buy Right share
At Right Time
& At Right value. ✅

#levelsofconviction ❤️❤️❤️

Buy IEX : 170-172
Conviction cash call. 3 Month.
Targets : 192 ( eaisly) / 213 / 234 / 251
Above that 258 / 276 if sustain above
Ultimately 344. ✅

Learn when and where to work.

Yesterday's learning one gentleman used it wisely ✅❤️❤️❤️

Want to learn Gap theory...?
Hit 'Thumbs up' so that will share you the learning which we shared on the weekend in Private.
👍

Thanks for the motivation 🙏

Learning #019📌
What are Gaps..? Why do they occur and understand the type of gaps.

Gaps on the candlestick charts are the areas where no trade took place.
Mainly they occur between the closing of the day and opening of the next day.

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It is often seen that price moves in sideways most of the time and trends in one direction the other time. Some times during these movements, price tends to open higher or lower than the previous days close. These gaps often show market participants enthusiasm in buying or selling the stock. There are two gaps observed in stocks which are gap up and gap down.

Gap Up: Let us consider that a stock closed at 1000 rupees on day 1 and has opened at 1050 rupees on day 2. This jump in price from 1000 to 1050 directly is termed as a gap up opening. There are several reasons for this gap up opening and one of the reasons could be the results of the company being announced. The gap up opening signifies "a very strong bullish sentiment".

Gap Down: If a stock closed at 1000 rupees on day 1 and has opened at 950 rupees on day 2 it is termed as a gap down opening. The gap down opening signifies "a very strong bearish sentiment".

Now let us categorize gaps into 4 types according to technical analysis:

1)Common Gap
2)Breakaway Gap
3)Runaway Gap
4)Exhaustion Gap

We will understand each type of gap . why it is formed and the psychology behind each gap along with the chart pattern example.

Common Gap: Common gaps also termed as trading gaps are frequently seen in the market. These gaps are observed when the market is in a range. Common gaps get filled in a short period of time.

Filling a gap means that the price reaches to the point where it was on the previous day of the gap. Many times common gaps are accompanied by low volumes. As per Dow Theory, movement in price should be in association with volume. Gap Up/Gap Down with low volume shows the weakness in trend. So, the price reverses and fills the gap.

Breakaway Gap: This type of gap is usually observed when price moves in congestion or a narrow range. Upper channel of the congestion zone acts as resistance and lower channel acts as support. Price breaks out of this congestion zone with good amount of volumes. After the gap is observed, market may move in the direction in which the gap has occurred.

People who hold positions on the other side of breakout are forced to close their existing positions which further increase the momentum in the price.

Runaway Gaps: Runaway Gaps usually occur in the middle of the trend. This signals the strength of the trend caused by new interest in the market. Runaway Gaps can be seen in an uptrend and downtrend as well. Runaway gaps lead to huge losses for those who are on the opposite side of the gap. A sudden increase in the interest can be due any announcement by the company following which new people who couldn’t enter at lows now try to enter at the current market price/high.