What are the characteristics of four phases (Consolidation, Breakout, Runaway and Exhaustion) of trend?

[A AHAMED SULAIMAN SHAMEEM]

Consolidation – Occurs in the non – trending area, volume is low, gets filled in the near term

Breakout – Occurs in the trending area, volume is high, begining of a new trend, doesn’t get filled in the near term

Runaway – Occurs in the trending area, volume is not necessarily high, same trend continues after runaway, doesn’t get filled in the near term

Exhaustion – Occurs in the trending area, volume is high, termination of a trend, gets filled on the same day

[Sathish Kumar P T]

Area GAP – Gap in sideways trending – Once identified , this GAP does not carry any value and stay out of this stock
Break-out GAP – Gap formed during the trend break out – On identifing this GAP , one can go LONG
Runaway GAP – GAP formed after Break out GAP – GAP indicates bullish trend and hence one can go LONG
Exhaustion GAP – Runaway GAP formed on the day is filled on the same day – This GAP indicates that the stock has lost steam and bearish trend can be expected. One can go SHORT.

[swaroopa]

Consolidation: It occurs in the non-trending area with is filled in near term with low volume.

Breakout: It occurs in trending area which is not filled in near term with high volume, it is a beginning of a new trend.

Runaway : It occurs in the trending area, and its not filled in near term which volume is not necessarily should be high.

Exhaustion: it occurs in the trending area, the volume should be very high and termination of trend gets filled on the same day.

 

[Rajkumar]

Consolidation is the phase where share price moves within a range and moving above or below the range is called as breakout

After Breakout if it further moves upward with a GAP and distributed volume and close at the day’s high is called runaway
Exhaustion GAP – It looks like a runaway GAP but get filled on the same day and volume will be high. Otherwise instead of runaway it fall back and close the GAP

[Milanrp]

 

Consolidation or area gap: This occurs between the resistance and the support zone. This gap is expected to be filled in the near term.

Break out gap: Gap occurring in the trending zone is termed as the breakout gap. The volume during the break out gap must be high.

Runaway gap: If a gap occurs after the break out gap then it is termed as a runaway gap. This indicates the start of a strong trend.

Exhaustion gap: If the gap in a trending zone opens up and is filled on the same day then the gap is called a exhaustion gap. This shows that the trend has come to an end.

 

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