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Trading Lesson of the Day
Measured and Exhaustion Gaps
Nirvana Systems - November 27, 2007

Measured and Exhaustion Gaps

Identifiable Patterns After Confirmation Move

We have previously mentioned the 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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