I.
Runaway Gaps
The runaway gap is described as a gap caused by rising interest in stocks. The upward
runaway gap usually represents traders who do not enter during the early move and,
while waiting for the price rise, decides it will not happen. The sudden surge in buying
interest occurred, and the price gap was above the previous day's close. This type of
runaway gap represents a state of panic among traders. Also, a good uptrend can lead
to gaps caused by important news events that have sparked new interest in stocks. In
the chart below, notice the significant increase during and after the runaway gap.