Are these Runaway or Measuring Gaps October 25, 2014 by Ashok Goel·0 Comment Is Nifty or most of the major scrips making a runaway or measuring gaps. From last four days nifty is opening with a gap up and closing higher. After the move has been underway for a while, somewhere around the middle of the move, prices will leap forward to form a series of gap called runaway gap. This type of gap reveals a situation where the market is moving effortlessly on moderate volumes. In, an up trend, its a sign of market strength. Here, runaway gaps act as support under the market on subsequent corrections and are often not filled. This variety of gap is also called a measuring gap because it usually occurs at about the halfway point in a trend. By measuring the distance, the trend has already travelled,from the original trend signal or breakout, an estimate of the probable extent of the remaining move cab be determined by doubling the amount already achieved. This move is said to be started on 14th August 2013, from say 5471 and has reached the present level of 8000, with an increase of 3471 points. Doubling the move from here means :8000+3471 i.e. 12471. So, this move after a runaway gap should take nifty to 12471 before making a halt for further any move. Read more a2analysts/
Posted on: Sat, 25 Oct 2014 10:33:32 +0000
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