A GAP is the empty space that is seen between the opening price of a stock and the closing price of the stock from the previous day.
Area Gap- Occurs within the broad trading area. The gap is usually filled soon. Breakout Gap – Occurs when price moves from broad trading area. The volume is usually high.
Runaway Gap
Exhaustion Gap
A gap appears when there is a paradigm shift from the closing price of the previous day.
Post breakout, the runaway gap takes place. The area gap may not be filled in the forthcoming sessions. The volume is distributed evenly during the day
If the gap that appears after a trending zone seems to be a runaway gap and it gets filled on the same day, it is considered to be an exhaustion gap. The volume is very high during the day.
