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Exhaustion Gap

What does exhaustion gap mean?

An exhaustion gap occurs when an asset has been rapidly increasing in price, and is like a last gasp effort for traders to push price higher.

Exhaustion gaps can be very difficult to distinguish from runaway gaps in an asset that has been trending strongly, but it is worth attempting to identify them because they are a reversal pattern that often occurs before a strong reversal in price.

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Notes

The views expressed on this blog are based on personal opinion and experience, and should not be considered as professional financial investment advice. Feel free to contact us here. For our live charts & news, we’re using the awesome APIs from CryptoCompare and Cryptopanic.

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