Runaway Gap

Runaway Gap separates the mid-trend continuation gap from every other gap a chart prints, the first dedicated implementation of the runaway gap. A qualifying bar must open and trade entirely beyond the previous bar's range, clear a minimum size in percent of price or ATR units, print with an established trend, and carry conviction volume without frenzy. Each accepted gap is boxed and extended forward, numbered within its trend, and paired with the classical measuring-gap projection: the trend-origin-to-gap-midpoint distance extended beyond the gap.

How to Trade the Runaway Gap?

• Gap prints: a with-trend continuation signal; the untraded zone is expected support in an uptrend, resistance in a downtrend, and the Gap Zone Retest alert fires each time price returns to it after moving away.
• Measured target: the dotted Target line is a coarse objective for what remains of the move. The estimate turns ambiguous once a trend prints several gaps.
• Gap filled: a decisive close beyond the zone's far edge (below it after a bullish gap, above it after a bearish one) fades it to gray and breaks the continuation case: the trend had less behind it than it appeared, or the gap was exhaustion in disguise.

Runaway Gap Settings

• Minimum Gap Size (default 0.1) with its unit selector (default % of Price; ATR available) and ATR Length (default 14): the size floor.
• Trend Basis (default SMA) with length (default 50): the average defining trend direction.
• Established Trend (bars) (default 10): bars price must already hold the trend side, filtering launch-point gaps of breakaway territory.
• Apply Volume Filter (default on) with Volume Average Length (default 20), Minimum Volume (x Average) (default 1) and Maximum Volume (x Average) (default 3).
• Measured Target Projection (default on); style: Pattern Labels and Show Trend Basis (both on).

Frequently Asked Questions

How do runaway and exhaustion gaps differ?

Why was an obvious gap ignored?

What does the number on a label mean?