Runaway Gap appears after a Breakaway Gap and Start of New Trend.  A sudden increase in the interest can be due to any announcement by the company following which new people who could not enter at lower levels, now try to enter at the current market price/high.

 

4 Comments
  1. Naresh 5 years ago

    Hi,
    Runaway gap should be a previous run up in price.

    • Author
      P.P.Lakshminarayana 5 years ago

      I couldn’t understand Mr.Naresh. Can you specify once again along with a screen shot of similar pattern, if possible?

      • Naresh 5 years ago

        Hi,
        Sharp falling price action in a bear trend followed by a gap. please refer the attached screenshot.

  2. Naresh 5 years ago

    please refer the attached screenshot

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