Let's get to know Runaway Gap and see what signals this gap gives traders


Let's get to know Runaway Gap and see what signals this gap gives traders
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11/26/2022



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Runaway Gap Some technical analysts have definition helps to remember that "How much did it come? It will double further." This is because the runaway gap is a gap that will occur in the middle of the movement. For example, suppose The price has moved up from the €100 level (after the breakaway gap) and has continued to move up to the second gap (runaway gap), assuming the €150 area. Would be able to predict that the price target (target) or resistance will happen It will be around €50 after the runaway gap, or around €200, because the runaway gap will occur in the middle of the movement. And because such a gap can be used as a distance measurement aid. Mobility Hence it is also known as measuring gap.


In this runaway gap situation, it is said that only the normal volume It can make the market move easily, which in terms of Uptrend means that after this gap, it can continue to move. But on the other hand, if it is a downtrend, it will undoubtedly go down.


Like a breakaway gap, in the case of a runaway gap, it can act as support and resistance, but it should be noted that If this is a real signal, the gap must not be closed, meaning that prices in the coming days must not move down to close the gap in the event of an uptrend. Because when the gap is closed the resulting signal Will go in the opposite direction, that is, from the original that I bought will be sold instead.


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