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.
Investopedia Says:
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.
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See how you can profit from these disruptions in normal price patterns. Playing The Gap
