the following graph shows the exhaustion gap of the stock
exhaustion gap
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Stock Analysis
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Hi,
An exhaustion gap is identified by high volume and the large price difference between the previous day’s close and the new opening price. Actually, the gap occurs at the top or bottom with huge volume, chances are more that the market is exhausted and the existing trend is at pause. It is important to note that the exhaustion pattern should not be treated as a significant reversal.