> For the complete documentation index, see [llms.txt](https://smartmoney.gitbook.io/smart-money-concepts/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartmoney.gitbook.io/smart-money-concepts/definitions/candlestick-patterns/gaps.md).

# Gaps

Reversal patterns

Gaps are reversal patterns. They occur when there is space between two trading periods caused by a significant increase or decrease in price. For example, a stock might close at $5.00 and open at $7.00 after positive earnings or other news.

There are three main types of gaps: [Breakaway](https://www.investopedia.com/terms/b/breakawaygap.asp) gaps, [runaway](https://www.investopedia.com/terms/r/runawaygap.asp) gaps, and [exhaustion](https://www.investopedia.com/terms/e/exhaustiongap.asp) gaps. Breakaway gaps form at the start of a trend, runaway gaps form during the middle of a trend, and exhaustion gaps form near the end of the trend.

<figure><img src="https://929344964-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5nf3g52cn0PXZ0Xzzs9m%2Fuploads%2FppoFK7MwzHhptl3j9Kqy%2Fimage.png?alt=media&amp;token=610ac208-f218-44df-ae0d-7cbd10d52df6" alt=""><figcaption></figcaption></figure>