Question

Gaps that occur along a trend are known as a. Breakaway Gaps b. Exhaustion Gaps Measuring Gaps Reversal Gaps C. d. Which indicator is calculated by the total daily volume being added to the previous day index if the price close was higher and subtracted from the previous day index if the price close was lower than that of the previous day a. Relative Strength Index b. Chaikin Money Flow ww Williams Variable Accumulation Distribution C. d. On Balance Volume

Answer 1

1. Gaps that occur along a trend are known as measuring gaps or runaway gaps. It occurs during the half way of the price move.

Option c. Measuring gaps.

2. On Balance volume:
It is computed by adding/subtracting the day's volume to a cumulative total when the security's price closes up/security's price closes down.
That is if security's price closes up- Add to the cumulative total.
security's price closes down - subtract from the cumulative total.

Option d. On Balance volume.