Runaway Gap


DEFINITION of 'Runaway Gap'

A type of gap on a price chart that occurs during strong bull or bear movements characterized by an abrupt change in price and appearing over a range of prices. They are best decribed as gaps caused by an sudden increase/decrease in interest for a stock.

Runaway Gap

The image shows a gap in the middle of a large upward movement.


Sudden price changes are expected during strong bull and bear markets. However, most analysts view these gaps as temporary, expecting prices to converge upon the range in which the gap occurred in order to fill the missing segments.

  1. Bear

    An investor who believes that a particular security or market ...
  2. Gap

    A break between prices on a chart that occurs when the price ...
  3. Exhaustion Gap

    A gap that occurs after the rapid rise in a stock's price begins ...
  4. Bull

    An investor who thinks the market, a specific security or an ...
  5. Breakaway Gap

    A term used in technical analysis. A breakaway gap represents ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
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  1. What are the reasons Runaway patterns are formed?

    Runaway patterns, also known as runaway gap patterns or measuring gaps, represent leaps in a stock's price that is already ... Read Full Answer >>
  2. Does a stock split lead to the gapping up/down of the stock?

    If a company splits its stock, there will be no gapping of the stock due to the split itself. A stock split does not materially ... Read Full Answer >>
  3. Do stop or limit orders protect you against gaps in a stock's price?

    Many individuals are hesitant to invest in the stock market because of the large gaps in prices talked about in the news. ... Read Full Answer >>
  4. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
  5. Tame Panic Selling with the Exhausted Selling Model

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