Exhaustion Gap

Exhaustion Gap is a technical term describing that the stock's price opens up on a gap from the prior day's high close marking the end of a bullish trend.

Exhaustion Gap

Exhaustion Gap is a technical term describing that the stock's price opens up on a gap from the prior day's high close marking the end of a bullish trend.

 


Exhaustion Gap Identification

An Exhaustion Gap occurs at the end of a strong upward movement in stock price. The gap is filled in after a period of time.

Exhaustion Gap Interpretation

Technical analysts consider a prolonged trend is near an end when an Exhaustion Gap occurs.  A correction is likely.



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