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Gaps occur in two ways.

• There is a distance between the low of the previous session and the high of the current session when the price is falling.
• There is a distance between the high of the previous session and the low of the current session when the price is rising.

Gaps usually represent a sudden jump in the price. There are some cases that gaps appear on a chart only because of price feed malfunction or because the chart provider's server has been down. When you analyze gaps make sure they are not caused by technical difficulties.

A gap could fall into any of the following categories:

• Common gap
• Runaway gap
• Exhaustion gap
• Breakaway gap

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