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The Gap Study

Chapter 3

Volume: the gap's footprint

How the radar measures a gap's volume, and what we found when we split thousands of entries by volume: it did not carry further, but it held more.

A gap tells a story in two parts: price says how far it jumped, and volume says how many took part. A big jump on thin volume can be a passing adjustment. A jump on heavy volume is often the whole market changing its mind.

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