Thursday, August 03, 2006

 
Trading Education Tutorial

Measured and Exhaustion Gaps



Moving Averages Help Us Identify Trend Reversals

There are three types of gaps that are of relevance to investors - the breakaway gap, the measured (or continuation) gap, and the exhaustion gap. We previously discussed the breakaway gap, but it is important to discuss the measured gap and exhaustion gap at the same time. Why? Because it is difficult to tell one from the other until after the fact.

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