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Nikita (SEBI RA)

22nd Oct · SEBI-Registered Analyst

Runaway Gap – Mid-Trend Confirmation ⚡

📊 The Runaway Gap (also called Measuring Gap) occurs during an existing strong trend — confirming the trend’s continuation. ✅ Formation: Appears mid-way through a strong uptrend or downtrend. Price gaps in the trend direction with rising volume. No reversal signs visible on next few candles. ✅ Meaning: Market enthusiasm continues → momentum strong. 📌 Example: Stock already up ₹620 → ₹720, then opens gap-up at ₹735 and closes ₹755 → Runaway Gap → trend continues toward ₹800. 🧠 Tip: In uptrend, the distance from breakout to gap ≈ same as from gap to final target (projection technique).

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