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A few days later, or the very next day, the market price opens at $84.00 and closes at $82.90, keeping itself below the area of $86.00 and $84.00. All the trading above $86.00 will appear on the technical analysis chart to be isolated and is known as an "island reversal."
One can also see them in price congestion area. Usually, the price moves back or goes up in order to fill the gaps in the coming days. If the gap is filled, they offer little forecasting significance. Exhaustion gap – signals the end of a move. These gaps are associated with a rapid, straight-line advance or decline.
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