LogoLogo
Sniper Entry ProEzAlgo ProTradingHubDiscord
  • 🟢Getting Started
    • Why Use EzAlgo?
      • How It Works
      • What We Offer
    • Join EzTrades in Discord
    • What Is TradingView?
    • Memberships
      • 👀TV Crypto Watchlists
      • 💰Affiliate Program
    • 📑Recommended Brokers
    • ❓FAQ
  • 📖User Guides
    • EzAlgo V15.2
    • EzOscillator V6.2
    • Sniper Entry Pro V3.3
      • Displacement
      • Market Structure Shifts
      • High-Probability Setups
      • Dollar-Cost Averaging
    • Installation and Setup
      • How to Setup EzAlgo
      • Getting Started
      • How to Set Alerts
      • How to Update Indicators
      • Risk Management
      • Automation
  • 🎓Education
    • Technical Analysis
      • Price Action
      • Volume
      • Support & Resistance
      • Fibonacci Levels
      • Heikin-Ashi Candles
      • Elliott Waves
      • Chart Patterns
        • Continuation Patterns
          • Flags
          • Pennants
          • Rectangles
          • Triangles
          • Wedges
        • Reversal Patterns
          • Double Bottom / Top
          • Gaps
          • Head and Shoulders
          • Triple Bottom / Top
      • Candlestick Patterns
        • Abandoned Baby
        • Dojis
          • Doji Stars
          • Dragonfly Doji
          • Evening Doji Star
          • Gravestone Doji
          • Morning Doji Star
        • Engulfing
        • Evening Star
        • Hammer
        • Hanging Man
        • Inverted Hammer
        • Morning Star
        • Shooting Star
        • Spinning Top Black
        • Spinning Top White
        • Three Black Crows
        • Three White Soldiers
    • Technical Indicators
    • Risk Management
      • Cross vs. Isolated Margin
      • Dollar Cost Averaging
      • Leverage Trading
      • Spot vs. Margin Trading
    • Trading Rules
  • 🔗Official Links
    • EzTrades Discord
    • Sniper Entry Pro Website
    • EzAlgo Pro Website
    • Indicator Access
    • EzSMC Indicator (Free)
    • TradingHub Discord
    • TradingHub Website
    • YouTube
    • Instagram
Powered by GitBook
LogoLogo

Documents

  • FAQ
  • Introduction
  • Installation Guide

Community

  • Discord
  • YouTube

More

  • Affiliate Program
  • EzTrades Blog
  • TradingView

Copyright © 2024 EzTrades

On this page
  1. Education
  2. Technical Analysis
  3. Chart Patterns
  4. Reversal Patterns

Gaps

PreviousDouble Bottom / TopNextHead and Shoulders

Last updated 1 year ago

Gaps are patterns that occur when there is a significant increase or decrease in a stock's price, creating a space between two trading periods. They can be a sign of a potential trend reversal. There are three main types of gaps: Breakaway gaps, runaway gaps, and exhaustion gaps.

Breakaway gaps occur at the beginning of a trend, when there is a sudden increase or decrease in price that creates a gap. This can be caused by a significant news event or other market factors. Runaway gaps occur during the middle of a trend when the price continues to move strongly in one direction, creating a gap in the chart. Exhaustion gaps occur near the end of a trend when the market is starting to lose momentum, and the price begins to move in the opposite direction.

It's important to note that gaps can be filled, which means that the price may move back to fill the gap at a later time. Traders should also use other forms of analysis and risk management techniques to make informed trading decisions, as false signals can occur, and gaps may not always be a reliable indicator of a trend reversal.

🎓