exhaustion gap - Investment & Finance Definition
A pattern on a technical chart that shows a strong upward or downward movement that is soon followed by a movement in the opposite direction.
In technical analysis, a chart formation in which a gap in a price range occurs when a stock declines following a rapid rise. The exhaustion gap usually occurs on relatively low volume as demand, at least temporarily, falls off. Technical analysts generally believe that an exhaustion gap eventually will be filled when the stock resumes its upward push.