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area – belongs to buyer/seller, gaps inside non trending area(sideways)
breakout – out of the range – followed by good volume – good sign for a buy – beginning of new trend or breaking out
runaway – before breakout seller dominating the market, during breakout seller losing money, sellers are run away from this zone, no sellers more buyers
exhaustion – early sign of trend almost terminated, during open there is a gapConsolidation :-
1. During this stage the gap will appear inside the trading range.
2. The gap created gets filled easily.
3. The volume during the consolidation stage is generally low.
Breakout : –
1. Break out Gap appears when the price breaks out from its trading range.
2. The volume during the break out day is usually very high.
Runaway :-
1. Runaway Gap appears after the breakout.
2. The close will be at its day’s High during the Runaway Gap.
3. The volume is evenly distributed during the day.
Exhaustion :-
1. The gap that appears after the breakout from the trading range ( Runaway Gap) gets filled in a same day.
2. The close usually will be at its day’s low after forming the runaway Gap.
3. The volume will be generally very high during the day to terminate the existing trend.
Consolidation :-
1. During this stage the gap will appear inside the trading range.
2. The gap created gets filled easily.
3. The volume during the consolidation stage is generally low.
Breakout : –
1. Break out Gap appears when the price breaks out from its trading range.
2. The volume during the break out day is usually very high.
Runaway :-
1. Runaway Gap appears after the breakout.
2. The close will be at its day’s High during the Runaway Gap.
3. The volume is evenly distributed during the day.
Exhaustion :-
1. The gap that appears after the breakout from the trading range ( Runaway Gap) gets filled in a same day.
2. The close usually will be at its day’s low after forming the runaway Gap.
3. The volume will be generally very high during the day to terminate the existing trend.
Consolidation or area gap- Area gap will appear inside the trading range and may be filled in the near term. The volume during the gap day is generally low.
Breakout gap- Breakout gap appears only when the price gives breakout from its trading range and may not be filled in the near term. The volume during the gap day should be high.
Runaway gap- This takes place post-breakout which appears inside this area. Area gap may not be filled in the near term and close should be at its day high during runaway GAP. The volume is distributed evenly during the day.
Exhaustion gap- The gap that appears after the trending zone seems to be a runaway gap but if it gets filled on the same day then it can be an exhaustion gap. The close should be at its day’s low during the runaway gap. The volume should be very high during the day.
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