Weekly Market Research Report 29-06-19 (Gaps)

Are you a new Trader or Investor? Spider Research is a program initiated by the Spider Software to provide free Stock Market Education with our Weekly Research Articles.

Gap Up & Gap Down

 A gap is essentially a change in prices levels between the close and the open of two consecutive days. Gap analysis requires confirmation that is only available after the price movement actually manifests itself. For example, there are different types of gaps like Breakaway Gap, Runaway Gap, Exhaustion Gap and Island Reversal.

  • “Breakaway Gap”:Breakaway gaps are the gaps that occur at the end of the share’s price patent. Break aways either indicate a Gap Up or a Gap Down. Either ways, they indicate a new trend or the beginning of a new direction.
  • “Runaway Gap”: A runaway gap is a type of gap on a price chart that occurs during strong bull or bear movements. It is characterized by a significant change in price in the direction of a trend. During a trend, a security’s price may show several runaway gaps which can help to reinforce the trend’s direction.
  • “Exhaustion Gap”: Exhaustion gap represents the opposite end of the trend compared to the breakaway gap. Exhastion Gap represents the final leg of a price pattern and is an indicator of a final attempt to reach the new high or lows in pricing. This is used to indicate reversals of a trend.
  • “Island Reversal”: An island reversal is short-term reversal pattern that forms with two overlapping gaps.Traders with positions taken between the two gaps are stuck with losing positions. A bullish island reversal forms with a gap down, short consolidation and gap up. A bearish island reversal forms with a gap up, short consolidation and gap down.

______________________________________________________________________________________________

Previous Breakaway Gap support in GRAPHITE (Daily Chart)

Looks Good Above: 331

Can be: 366, 387 & 407

Looks Weak Below: 331

Can be: 311, 290 & 270

Used Retracement to draw level.

______________________________________________________________________________________________

Auto Inverted Head and Shoulder Pattern In DABUR (Daily Chart).

Looks Good Above: 405

Can be: 420, 438 & 455

Looks weak below: 394

Used Retracement to draw level.

A Disclaimer: This newsletter has been designed for informational and educational purposes Only.
It does not constitute an offer to sell nor a solicitation of an offer to buy any security, Which may be referenced upon the site.
The services and information provided through this newsletter are for personal, non-commercial, educational use and display.
www.spidersoftwareindia.com does not provide investment advice through the site and does not represent that the securities or services discussed are suitable for any investor.
This newsletter may include market analysis, All ideas, opinions, and/or forecasts, expressed or implied herein, information, charts or examples contained in the lessons
are for informational and educational purposes only & Should not be construed as a recommendation to invest, trade, and/or speculate in the markets.
Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
The accuracy, completeness and timeliness of the information contained in this newsletter cannot be guaranteed. www.spidersoftwareindia.com does not warranty, guarantee or make any representations,
or assume any liability with regard to financial results based on the use of the information in the site.www.spidersoftwareindia.com is not liable for any harm caused by the transmission,
through accessing the services or information on this site, of a computer virus, or other computer code or programming device that might be used to access, delete, damage, disable,
Disrupt or otherwise impede in any manner, the operation of the site or of any user’s software, hardware, data or property.

 

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *