Gap Analysis

Analysis of gaps then - what just does this mean I hear you cry?

Well, this refers to a method that is used to analyse what charts are showing.

Simply you plot and look at the daily high and low price for a stock on a graph, and a vertical bar on that graph shows where the share ended.

The gaps tend to show you something too, and this is what happens through gap analysis.

There are four main types of gap that are out there, and these are respectively referred to as the common gap, then there is the breakaway gap. Next up is the runaway gap and finally, yes, there is the exhaustion gap.

If you're already exhausted with all this financial gap analysis of currencies then steal yourself, because the next four articles will go into detail as to what each of these gaps are and just what they might mean or indicate when they appear with regard an individual currency.

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