Monday, May 11, 2020

Trading using Gap Theory

Gap theory is another powerful tool to predict the direction of an instrument. Mainly below gaps are important.
  1. Gap Up : Buy the stock
  2. Gap Down : Sell the stock
  3. Gap Covered : Buy/Sell based on other indicators  
Posting the Reliance stock with all the marks with gaps and what to do on each one.



One other concept called gap covering is important, usually the theory is all gaps get covered but that works mostly in indexes like Nifty and BankNifty.

References

https://www.5paisa.com/school/gaps-technical-analysis

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