All language subtitles for 5. Runaway Gaps

Another gap, of course, that's really important is a runaway gap, and they're very, very important

because it relates to continuing to ride a trend and continue to ride that trend that might be happening

when you have this runaway gap.

And if you think about it, what the difference is between a breakaway and a runaway gap is a breakaway

gap is the breaking away.

It's breaking away and starting a trend.

A runaway gap is one worth continuing the trend.

So you might have a breakaway gap that changes things and starts a new trend.

And the runaway reinforces that later as prices go, reinforces that and continues that trend and maybe

want to continue to add to that position and continue to ride that trend if it's, let's say, an upward

trend could be upward or downward either way as far as a runaway gap.

But the idea is it's not creating a new trend.

It's continuing.

An existing trend is a runaway gap.

And that means there might be some even more good news coming out or something that's been building

on this.

And there's a fear of missing out or foam or whatever.

So it's created a big leap, let's say, in pricing.

And so let's take a look at runaway gaps and how to recognize them and talk about the trading opportunity

with them.

So if we keep looking, for example, here, you can see how over this time period there was a breakaway

gap and then that started a new trend that breakaway groups will start a trend in.

This happens to be an uptrend.

Then there's a little sideways movement and then there we have a gap between these 11 and 12.

And that would be a runaway gap.

Again, it's you can see it's kind of continuing more of that previous trend.

So that's why it wouldn't necessarily be a true breakaway gap is really continuing the trend.

And that's what makes it a runaway gap, a real strong indicator as far as that continuation of that

trend.

If we were to look at it in a different way here, you can see the black line shows that trend from

the previous breakaway gap from starting on day five.

And then we have a little bit of a pullback, which is normal.

People will buy in a dip.

You know, we had a little trend, you know, of three days.

People will sell a little bit and then new buyers.

So that goes down and the new buyers will come back in and reinforce the trend.

And so we have that buying on the dip when it kind of dips down for a pullback for a day or two, maybe

three or four.

And then we have back again more movement back towards an uptrend.

In this case, it could be a downtrend as well.

But in this case, we're looking uptrend.

So we then have that big gap between days 11 and 12, and that's the runaway gap.

So you're really reinforcing the continuation of the trend.

It is very normal and natural to have a little bit of a pullback.

So you want to be watching for that.

And then all of a sudden, if you see another gap come up, that's your runaway gap.

And that's going to really reinforce the trend.

That's going to continue the trend.

So we'll be looking forward today's thirteen and going forward that the trend that we had seen before

will keep going.

And that's a really good buy sign.

If it was the opposite way, a good sell sign on a downward trend.

But in this case, example we're using, we can see we've had our breakaway gap.

We've had a little bit of a pullback.

Now we've had a runaway gap and we're still going and we're still doing well continuing with this trend

and getting some profits there.