Price Void◐ Heuristic
◆ The PatternEmpty space between candles — where no trading happened
Gaps occur when price opens above the prior close (gap up) or below it (gap down), leaving a void. Four types: Common (noise, often fills), Breakaway (starts a new move), Runaway (continuation), Exhaustion (end of move).
Breakaway → starts move · Runaway → continues · Exhaustion → ends
"Gaps always fill" is a myth — breakaway and runaway gaps often don't fill for months or years.
// Four types of gaps
Key insight: Volume distinguishes gap types — breakaway gaps have high volume, runaway gaps have moderate volume, and exhaustion gaps have extreme volume followed by a reversal.
Pattern bridge: A discontinuity where price jumps past a range. In statistics, outliers are the same — data points that break the expected distribution.