- A runaway gap, typically seen on charts, occurs when trading activity skips sequential price points, usually driven by intense investor interest.
- Market technicians have theorized that runaway gaps often occur after a security has experienced a breakaway gap.
- The psychology behind a runaway gap is that traders, who did not get in during the initial move, get tired of waiting for a retracement to join what they perceive to be a trending market and jump in en masse.
Hi,
Thanks for sharing your analysis with us.