 |
Definition of 'Exhaustion Gap'
A gap that occurs after the rapid rise in a stock's price begins to tail off. An exhaustion gap usually reflects falling demand for a particular stock.
The image shows a gap at the end of a large upward movement, signaling a reversal.
|
 |
Investopedia explains 'Exhaustion Gap'
Many technical analysts consider it a temporary gap. The range in prices gapped by the decrease in demand is expected to be filled once demand and the upward pressure on price are re-ignited.
|
-
See how you can profit from these disruptions in normal price patterns.
Read More »
-
Take a leap of faith and follow your stocks with gap patterns.
Read More »
-
On their own, single-day patterns can be unreliable, but that doesn't mean they can't be used effectively.
Read More »
|
|
