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.

BREAKING DOWN 'Runaway Gap'

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.

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