Courses / Candlestick Patterns Masterclass

Gaps: Breakaway, Runaway and Exhaustion

What gaps mean and how to classify them.

A gap is a space between one candle close and the next open. Stocks and indices gap often, forex mostly over weekends.

A breakaway gap starts a trend out of a range, a runaway gap appears mid-trend, and an exhaustion gap appears near the end of a move.

Gaps are often partially filled. Do not assume every gap must fill. Judge them by volume and context.

Key takeaways

• Three types: breakaway, runaway, exhaustion
• Volume and context decide the meaning
• Gaps do not always fill

Quiz

• A breakaway gap usually appears: Answer: When price leaves a range. It starts a new move.
• An exhaustion gap tends to show: Answer: A trend ending. It appears near the end of a move.
• Must every gap fill? Answer: No, judge by context. Not every gap fills.

Educational content, not financial advice.