When the open valve is well above the previous high it appears as a open space in the charts of technical analysis . Which is termed as GAP. Gap is the measure of strength of the trend and it also indicates phase of the trend.The breakout gap is also called Bullish breakout it shoots the price to such a extent that the price open well above previous peak. It occurs in trending Zone , it occurs in seller dominated area that resembles the buyers are clean swept the sellers area and sellers are no more in existance in that zone. It also has a high trading volume , the gap filling probablity is less in near term.The Exhaustion Gap appears if the stock opens at high price and due to any uncertainity the selling pressure increases and price falls below previous peak it is exhaustion gap. It falls in trending area , it follows just after gap up open, it is bearish move stating downtrend. It becomes difficuilt to spot it as in charts it dosent appears as a Gap but a bearish candle stick in between current open and previous day peak.

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