2min chapter

The Compound and Friends cover image

VWAP-er's Delight

The Compound and Friends

CHAPTER

The Breakaway Gap

There's a common gap. Normal order imbalance each day those get filled then there's three event gaps technical analysis gaps called the breakaway gap The running gap and the exhaustion gap seldom gets filled You see a stock goes sideways for a year year and a half A big surprise on earnings comes the stock is up 10 15 on massive volume That'll get filled in three years after the product cycle and the you know the whole cycle Right the measuring gap is somewhere in between halfway through and then the exhaustion gap It's just like this, you know, all that good news. They think something bad happens at the top No, no, no,No, something bad happens when stocks are going down right?

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