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Consolidation (Area) GAP – appears in non-trending area with low volume
Breakout GAP – appears in trending area with high volume
Runaway GAP – appears in trending area with normal volume
Exhaustion GAP – appears in the trending area with high volume
area gap – Volume is low. – (supply = demand ) – non trending
breakout – volume is high – (Demand > supply ) – trending
Runaway – volume is normal – (Demand > supply ) -trending
exhaustion – volume is high -(supply > Demand) .- trending (termination )
Consolidation => Area gap appears within the Trading Range with a high volume.,
Breakout => Price moves from the trading range and gives a breakout gap with a high volume.,
Runaway => The GAP appears on the trending area after breakout point with significant volume, It means Sellers are Aggressive.,
Exhaustion => Gap appears but it will fill within a day,& Volume is High…!
1. Consolidation or Area Gap: Someone has knowingly entered buyer/supplier zone when they were not supposed to. it forms withing the trending zone. A high volume here, is a suspect for trend reversal. One must check if this Gap is filled later.
2. Breakout Gap: This GAP is seen when an exit is observed from the trending zone – usually with high volume.
3. Runaway Gap : It is an indicative of control shift from sellers to buyers completely. Runaway- because sellers run away from the current position and buyers are holding on to the market with steep increase in prices. No gap filling is expected.
4 Exhaustion Gap: Its an indicative of trend termination. The gap appears in the opening price of the day with that of the previous day; this gap is filled by the end of the day.
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