Why Market Gaps Reveal Institutional Intentions ⚡📊
Gaps are not random — they show where institutions were forced to execute orders outside regular trading hours.
Types of Gaps You Must Understand:
1️⃣ Breakaway Gap
Occurs at the start of a new trend.
High volume + strong momentum → genuine shift in sentiment.
2️⃣ Runaway Gap
Appears mid-trend.
Confirms institutional follow-through and strong participation.
3️⃣ Exhaustion Gap
Occurs near the end of a trend.
High volatility but volume divergence → trend weakening.
How to Analyze Gaps Correctly:
Check if price fills the gap quickly → weak conviction.
If price respects the gap zone → strong institutional demand/supply.
Combine gap analysis with volume to understand whether the gap is sustainable.
Learning:
Gaps are footprints of large players.
Understanding them helps you identify trend strength before retailers do.