Hello Members/Seniors,
Some background - I was trying to understand difference between runaway and breakaway gap and I came across the attached chart while I was searching for some examples of gap on internet.
I am bit confused. In the attached image, I think that the type of gap is not a Runaway gap and is a Breakaway gap. The gap is formed after some consolidation or after formation of basing pattern (If you carefully look at the chart you can see that after initial rise in trend there is some consolidation happening. The prices are trading in a range from period of mid January till February after which prices rise up with a gap) . This is confirmed by large volumes in the area of breakout gap. So shouldn't this be a breakaway gap ?
Thanks,
zswap
Some background - I was trying to understand difference between runaway and breakaway gap and I came across the attached chart while I was searching for some examples of gap on internet.
I am bit confused. In the attached image, I think that the type of gap is not a Runaway gap and is a Breakaway gap. The gap is formed after some consolidation or after formation of basing pattern (If you carefully look at the chart you can see that after initial rise in trend there is some consolidation happening. The prices are trading in a range from period of mid January till February after which prices rise up with a gap) . This is confirmed by large volumes in the area of breakout gap. So shouldn't this be a breakaway gap ?
Thanks,
zswap