Gaps are spaces left on the bar chart where no trading has taken place.

• An up gap is formed when the lowest price on a trading day is higher than the highest high of the previous day.

• A down gap is formed when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a sign of market strength, while a down gap is a sign of market weakness.

• A breakaway gap is a price gap that forms on the completion of an important price pattern. It signals usually the beginning of an important price move.

• A runaway gap is a price gap that usually occurs around the mid-point of an important market trend. For that reason, it is also called a measuring gap.

• A exhaustion gap is a price gap that occurs at the end of an important trend and signals that the trend is ending.