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description: Reversal patterns
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# Gaps

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.

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