![]() An Exhaustion gap should not be read as a major reversal. When it is formed at the top with heavy volume, there is significant chance that the market is exhausted and prevailing trend is at halt which is ordinarily followed by some other area pattern development. A reversal day can easily help to differentiate between the Measuring gap and the Exhaustion gap. These gaps are associated with a rapid, straight-line advance or decline. Exhaustion gap – signals the end of a move.If the gap is filled, they offer little forecasting significance. Usually, the price moves back or goes up in order to fill the gaps in the coming days. ![]() One can also see them in price congestion area. Instead, the price activity has been oscillating between a relatively narrow range without forming any distinct trends").
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