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Area Gap : It will appears in non-trending area. It is nonsignificant. The volume during the gap day is generally low.
Breakout Gap : It appear only when price give breakout from its trading range. It may not filled in near term. The volume during the gap day should be high.
Runaway Gap : Post breakout, the runaway scenario take place, runaway gap appear inside this area. It may not be filled in near term. The close should be at its dayās high during runaway gap. The volume is distributed evenly during the day.
Exhaustion Gap : The gap appear after a trending zone seems to be a runaway gap, but if it get filled on a same day then it can be considered to be exhaustion gap.
Consolidation- The gap appears in trending range. The gap may be filled in near term. Volume is generally low.
Breakout- The gap appears outside the trending range. Gap may not be filled in near term. High volume.
After a breakout gap when a gap forms in the trend then this gap is called runaway gap. During a bullish breakout when a runaway gap appears then it is good time to invest for long and here medium to high volume are seen and this gap usually does not get filled.
After a trend rally when a gap forms and this gap closes on the same day with indication of trend reversal, this indicates the trend has come to an end and sellers have become strong.
Consolidation – This phase is usually called the Non-Trending area in between supply and demand zone. It is also the phase which has sideways movement of price. Here, both the buyers and sellers are powerful and hence it is not possible to determine the direction of the trend.
Breakout – It is the phase where the price crosses the non-trending with high volume due to the increase in support of one of the parties. This phase marks the beginning of new trend. It is the phase where Long or Short position is created.
Runaway – It is the phase where a party still gains support and dominate the counter party even after a rally following the breakout.
Exhaustion – It is the phase where the dominating party loses its strength and the counter gains control over the market. This marks the trend reversal.
Consolidation – Ā it’s where the stock is indecisiveĀ and trades within a range. The sideways movementĀ takes place during the consolidation phase.
Breakout – If the stock moves aboveĀ the range where it was consolidating, then it is said to be in breakout .Ā The volume should be in during breakout phase.
Runaway gap – After the breakout, if the stock keeps hitting new highs with good volume, then it is called runaway gap.
Exhaustion – it is the phase which indicates that the trend is going to exhaust a good trend. It is an indication that the stock may go into consolidation or trend reversal mode.
Consolidation : Gap appears inside the trading area and the volume are low to medium and the gap is closed either on the same day or next day of trading.
Breakout : Gap forms when the price jumps from the trading areas and forms new highs then the previous day.
Runaway: After the breakout if the stocks keep hitting new heights with High Volume its time to Buy.
Exhaustion : It is a phase where the dominating party looses its strength and the counter gains control over the market.
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