| 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
 |
|