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Nikita (SEBI RA)

22nd Oct · SEBI-Registered Analyst

Exhaustion Gap – End of a Trend ⛔

📊 The Exhaustion Gap appears near the end of a strong trend — signaling fatigue and upcoming reversal. ✅ Formation: Price gaps in the trend direction (up or down). Volume spikes abnormally high. Next few candles show indecision or reversal (Doji / Red candle). ✅ Meaning: Final push before trend ends. 📌 Example: Stock surges ₹950 → ₹1,100, then gap-up to ₹1,130 but next day red candle closes ₹1,110 → Exhaustion Gap → reversal likely. 🧠 Tip: Always confirm with RSI divergence or volume drop after the gap.

ZEEL

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