Day: May 20, 2022

For example, reversal or breakaway gaps are typically accompanied by a sharp rise in trading volume, while common and runaway gaps are not. Additionally, most gaps occur due to news, or an event such as earnings or an analyst’s upgrade/downgrade. Gap trading plays a crucial role in the stock market, offering traders opportunities to profit […]

Exhaustion gaps occur near the end of a price pattern and signal a final attempt to hit new highs or lows. These gaps are often followed by a reversal in the prevailing trend. Gaps occur due to news, imbalances, or other factors between the close and the open, leading to a higher or lower opening […]