Understanding Gap Up and Gap Down Psychology

🕯 Gap Up → Price opens higher than previous close (shows strong buying sentiment) 🕯 Gap Down → Price opens lower than previous close (shows strong selling sentiment) ✅ Key Types of Gaps: Breakaway Gap: Start of new trend (high reliability) Continuation Gap: Mid-trend acceleration Exhaustion Gap: End of trend, reversal possible 📌 Example: Stock closes at ₹400 → next day opens at ₹420 with high volume & breaks resistance → breakaway gap → potential rally. 🧠 Not all gaps are equal — identify the type before trading.