Gaps are spaces left on the bar chart where no trading has taken place. An up gap is formed when the
lowest price on a trading day is higher than the highest high of the previous day. A down gap is formed
when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a
sign of market strength, while a down gap is a sign of market weakness. A breakaway gap is a price gap
that forms on the completion of an important price pattern. It usually signals the beginning of an
important price move. A runaway gap is a price gap that usually occurs around the mid-point of an
important market trend. For that reason, it is also called a measuring gap. An exhaustion gap is a price gap
that occurs at the end of an important trend and signals that the trend is ending.
lowest price on a trading day is higher than the highest high of the previous day. A down gap is formed
when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a
sign of market strength, while a down gap is a sign of market weakness. A breakaway gap is a price gap
that forms on the completion of an important price pattern. It usually signals the beginning of an
important price move. A runaway gap is a price gap that usually occurs around the mid-point of an
important market trend. For that reason, it is also called a measuring gap. An exhaustion gap is a price gap
that occurs at the end of an important trend and signals that the trend is ending.
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