Replies to post #4399 on MJ Stocks Analysis

[greens12]

Gaps can be classified into four groups:

•Breakaway gaps are those that occur at the end of a price pattern and signal the beginning of a new trend.
•Exhaustion gaps occur near the end of a price pattern and signal a final attempt to hit new highs or lows.
•Common gaps are those that cannot be placed in a price pattern - they simply represent an area where the price has "gapped."
•Continuation gaps occur in the middle of a price pattern and signal a rush of buyers or sellers who share a common belief in the underlying stock's future direction.

http://www.investopedia.com/articles/trading/05/playinggaps.asp