Three types of gaps: Breakaway, Runaway or Measuring Gap and Exhaustion Gap.
Runaway gap or Measuring Gap:
It can be a gap or series of gap in the middle of a trend (uptrend or downtrend) – We can use this gap to measure the remaining move just doubling the amount already achieved since the start of the trend
It moves with moderate volume
It is a sign of strength of the market (weakness for a downtrend)
Runaway gaps can work as support areas for subsequent market corrections
They are generally not filled
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Runaway gap or Measuring Gap:
It can be a gap or series of gap in the middle of a trend (uptrend or downtrend) – We can use this gap to measure the remaining move just doubling the amount already achieved since the start of the trend
It moves with moderate volume
It is a sign of strength of the market (weakness for a downtrend)
Runaway gaps can work as support areas for subsequent market corrections
They are generally not filled
If you are interested in Technical Analysis Theory, please subscribe and watch my Lessons
studio.youtube.com/c...wi7rGh5AR1aZ2p3qpGQg