• Breakaway Gaps

Occur when prices “gap” higher or lower out of a congestion pattern in the direction of the prevailing trend.

• Measuring or “Running” Gaps

Difficult to identify, but usually occur at the midpoint in a price rally or decline.

• Exhaustion Gaps

Occur at the end of a market trend, usually after steep accelerated uptrend or downtrend. The gap can leave one price bar or a small number of congestive price bars behind.

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