Three types of gaps: Breakaway, Runaway or Measuring Gap and Exhaustion Gap.
Breakaway gap:
1.At a completion of an important price pattern and generally the breaking of a resistance occurs on a breakaway gap
They sign the beginning of a significant market move
2.Breaking of a major trendline, in a reversal signal can also see a breakaway gap
3.They occur on heavy volume
4. Heavier are the volume, less likely the gap will be filled
5.The gap could be filled (generally not all the gap)
6. Upside gap they can work as support areas for subsequent market corrections
7. During an uptrend, it is important that prices do not follow below the gap, otherwise it is a sign of weakness
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Breakaway gap:
1.At a completion of an important price pattern and generally the breaking of a resistance occurs on a breakaway gap
They sign the beginning of a significant market move
2.Breaking of a major trendline, in a reversal signal can also see a breakaway gap
3.They occur on heavy volume
4. Heavier are the volume, less likely the gap will be filled
5.The gap could be filled (generally not all the gap)
6. Upside gap they can work as support areas for subsequent market corrections
7. During an uptrend, it is important that prices do not follow below the gap, otherwise it is a sign of weakness
If you are interested in Technical Analysis Theory, please subscribe and watch my Lessons
studio.youtube.com/c...wi7rGh5AR1aZ2p3qpGQg