Emerging site of the month: Nifty50Charts   Gaps are price
differences between present periods opening and previous periods
closing. Certain gap is said to be formed based on its
volatility and strength in the volume. As per the gap theory,
gaps formed in any kind of markets, irrespective of time period
has to be filled.  gap theory  Gap Types:  1. Common 2. Runaway
3. Exhaustion 4. Breakaway  Common gaps (Trading gaps)  common
gap theory  This generally occurs in day to day trading periods
or early morning gaps when differed with previous day’s closing.
These gaps may fill quickly as they do not have much
significance in nature. This may be due to over excitement of
traders, sudden increase of volumes or any other insignificant
reason.  Runaway gaps (Towards the trend)  runaway gap theory
When markets are taking a good trend, one can find a sudden gap
in the price candles due to sudden entry volumes which has taken
effect because of good trend. Also, traders who wait for a good
correction may not find that