No, stock chart gaps do not always have to be filled.While some gaps, like common gaps, often close, gaps like breakaway and runaway gaps are less likely to be filled, and may not even be filled at all.
Here's a more detailed breakdown:
Types of Gaps and Their Filling Potential:
Common Gaps:
These are relatively common and tend to be filled relatively quickly, as they usually occur within an existing trading range and don't signal a significant market shift,says StockCharts - ChartSchool.
Breakaway Gaps:
These gaps occur when a price breaks through a resistance or support level and can signal the beginning of a new trend.They may or may not be filled, but they are generally less likely to be filled quickly, as they indicate a strong market movement.
Runaway Gaps:
These gaps occur within a clear trend and confirm the strength of the existing trend.Like breakaway gaps, they may or may not be filled, but they are also less likely to be filled quickly.
Exhaustion Gaps:
These gaps occur near the end of a trend and are more likely to be filled because they indicate that the trend is coming to an end,says TraderLion
DRO Price at posting:
$1.35 Sentiment: Buy Disclosure: Held
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