GAP analysis plays a significant role in Technical analysis.
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Hi sir,
This will be the appropriate answer for the question
What are the characteristics of exhaustion gap? Highlight why it is difficult to spot?:
Exhaustion Gap
1. The Gap is created at the start of the day i.e. starting price is much higher than the previous day’s highest price but gets filled by end of the day with Red body.
2. Exhaustion gap appears after a significant rally i.e. similar to the runaway gap but it closes with red body
3. volume should be very high to change the trend.
Difficult to spot – Since it starts as a runway gap but later ends as a exhaustion gap, the exhaustion gap is difficult to spot.