News, analysis and personal reflections on the markets & the financial sector

Wednesday, May 21, 2008

Technical Analysis - Major Gap Patterns

Continuation Gaps - Also called runaway gaps as they occur during strong price advances.

Breakaway Gaps - Occur after strong price patterns, ie; stock patterns trading sideways suddenly gaps away from that pattern.

Common Gaps - Also called trading gaps. As the name implies, these are uneventful gaps in price and generally fill very quickly.

Exhaustion Gaps - Occur in the direction of the prevailing trend, normally signifying final buying or selling before the trend changes.


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