Exhaustion Gap

A gap that occurs after the rapid rise in a stock's price begins to tail off. An exhaustion gap usually reflects falling demand for a particular stock.

The image shows a gap at the end of a large upward movement, signaling a reversal.




Many technical analysts consider it a temporary gap. The range in prices gapped by the decrease in demand is expected to be filled once demand and the upward pressure on price are re-ignited.



Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more.
Related Terms

Bear

Breakaway Gap

Bull

Gap

Runaway Gap

Technical Analysis

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