Gap types
Trend & Structure
Empty space on the chart
Breakaway gaps LAUNCH trends (don't fade them). Runaway gaps continue trends. Exhaustion gaps are the final gasp. They fill fast. Read a gap by where it appears in the trend.
Check yourself
A huge gap up after a 3-month rally, on massive euphoria, is most likely…
- Breakaway
- Exhaustion, the last buyers arriving correct
- Runaway
Late-trend euphoric gaps = the crowd's final entry. Nobody's left to buy after them.
Learn this properly
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