Noticed a Gap in the trending zone.  Not sure if it is a Breakout Gap or Runaway Gap.  Feel that it is a Runaway Gap.  The next day the Gap got completely covered by a Red Candle. Volume is also high.   That marked the end of the trend and there was a trend reversal.  Please comment.  

2 Comments
  1. Naresh 4 years ago

    Hi,
    It’s a perfect bearish engulfing pattern. ( Note- Runaway gaps often occur after the stock price has experienced a breakout gap)

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