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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Doo who wrote (34657)	12/3/1999 4:35:00 PM
From: JDinBaltimore	Respond to of 99985

Jeff, MSFT kind of qualifies a gap up but to tired to make the move higher. iqc.go2net.com

To: Doo who wrote (34657)	12/3/1999 4:39:00 PM
From: pater tenebrarum	Respond to of 99985

Jeffrey, "exhaustion gap" = a gap on a move to a final high or low. in commodities charting you often see a gap at the beginning of a move (break-away gap), that may be followed by a series of gaps if it is a strong move (run-away gaps) there may be a gap in the middle of the move (measuring gap) and one at the very end (exhaustion gap) regards, hb

To: Doo who wrote (34657)	12/3/1999 4:40:00 PM
From: John T.	Read Replies (1) \| Respond to of 99985

Definition of Exhaustion Gap -- "The Exhaustion Gap. The final type of gap appears near the end of a market move. After all objectives have been achieved and the other two types of gaps (breakaway and runaway) have been identified, the analyst should begin to expect the exhaustion gap. Near the end of an uptrend, prices leap forward in a last gasp, so to speak. However, that upward leap quickly fades and prices turn lower within a couple of days or within a week. When prices close under the last gap, it is usually a dead giveaway that the exhaustion gap has made its appearance. This is a classic example where the filling of a gap in an uptrend has bearish implications." Quoted from Technical Analysis of the Futures Markets by John J. Murphy, 1986 Edition, page 101 EDIT: Just like Heinz described in the prior post. Also, to see gaps, take a look at the 1-hour charts of DIA, SPY and QQQ.