1) common gap
2) break away gap
3) run away gap
4) exhaustion gap
Common Gap
Characteristics:
-is not supported by high volume.
-the gap is closed very soon, around 1 week.
 |
| Fig. 29 |
Break Away Gap
Break Away Gap UpCharacteristics:
-is supported by high volume.
-indicates bullish.
-usually the gap is not closed.
-usually the gap penetrate importance level.
Break Away Gap Down
-is supported by high volume.
-indicates bullish.
-usually the gap is not closed.
-usually the gap penetrate importance level.
 |
| fig. 30 |
Characteristics:
-is supported by high volume.
-indicates bearish.
-usually the gap is not closed.
-usually the gap penetrate importance level.
 |
| fig. 31 |
Run Away Gap
Run Away Gap Up
Characteristics:
-is supported by high volume.
-indicates bullish.
-basically, it begins with a trend.
-it indicates more intensity on the trend.
Run Away Gap Down
Characteristics:
-is supported by high volume.
-indicates bearish.
-basically, it begins with a trend.
-it indicates more intensity on the trend.
 |
| Fig. 32 |
The gap is exhausted usually after a long rally or near the top of a trend.
 |
| Fig. 33 |
Examples:
 |
| Fig. 34 Common Gap |
 |
| Fig. 35 Exhaustion Gap |
 |
| Fig. 36 Break Away Gap |
 |
| Fig. 37 Run Away Gap |
