Mind the Gap: An EMQQ Mini-Lesson on Price Gaps

You ever look at a chart and just see a big empty space between one day's close and the next day's open? That's a price gap, and while they can be a bit of a headache, they also offer some interesting insights. Take $EMQQ, for instance, which closed yesterday at 32.44 but could, say, open significantly higher or lower tomorrow. A common type is the 'breakaway gap,' which often happens on significant news and indicates a strong new trend forming, leaving prior support/resistance far behind.

Then there are 'continuation gaps' mid-trend, signaling that the existing momentum is still very much alive and kicking. Finally, 'exhaustion gaps' can appear near the end of a big move, a last gasp of enthusiasm before a reversal. Learning to differentiate them isn't foolproof, of course, nothing is in this game, but it's a useful tool to add to the kit. Often, these gaps do get filled eventually, acting like magnets, but don't hold your breath waiting. Sometimes they just stay open, a testament to the market's fickle nature.