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Finance GlossaryRunaway Gap
Runaway Gap
Definition of Runaway Gap
A runway gap or a continuation gap sometimes appears in the middle of a strong price trend. It reflects that the stock price is gaining sustained momentum. Often, these gaps show up when traders rush in. As a result, the prices can move sharply higher or lower. A runaway gap sends a strong signal to those who follow trends. It confirms the strength in price and suggests that the healthy momentum may continue for some time.
Related Terms
Shooting Star
A shooting star refers to a bearish candlestick pattern that appears after an uptrend. This pattern has a small body close to the low in a day, and a long upper wick. This shows that buyers pushed the prices up, but by the close, sellers took control over the stock. A shooting star often points to a possible trend reversal or short-term weakness.
Gravestone Doji
A Gravestone Doji is a candlestick pattern that signals the reversal of a bullish trend into a bearish one. The key marker of a Gravestone Doji pattern is the open, low, and closing prices being near to one another.
This is a price action type trading strategy that is formed with a tall upper shadow, which is a signal of a bearish reversal.
This is a price action type trading strategy that is formed with a tall upper shadow, which is a signal of a bearish reversal.
Authorized Capital
Authorized capital or authorized share capital is the maximum amount of capital for which shares can be issued by a company to its shareholders.
Or in other words, authorized capital denotes all the shares across all the categories that a company could issue if it wanted to raise money.
Or in other words, authorized capital denotes all the shares across all the categories that a company could issue if it wanted to raise money.
Volume
Volume represents the total number of shares or contracts traded in a security during a specific period. High trading volume often confirms the strength of a price movement, such as a stock breaking out of resistance with heavy volume, while low volume may indicate weak investor interest.
Abc Wave Theory
Abc Wave Theory or Elliot Wave Theory is used to determine the direction of the stock market by identifying recurring waves or patterns over the long term. The theory is named after Ralph Nelson Elliott.
5 Motive or Impulse Waves are formed if the movement is in the direction of the trend. 3 Corrective Waves are formed if the movement is against the direction of the trend.
5 Motive or Impulse Waves are formed if the movement is in the direction of the trend. 3 Corrective Waves are formed if the movement is against the direction of the trend.
Differential Voting Rights
Differential Voting Rights or DVRs are special types of shares that carry more or less voting rights, depending on the issuing company. For example, a DVR share that carries less than usual voting rights may generate relatively high dividends.
A publicly traded company that wants to issue DVR shares must go through a postal ballot. There are other caveats as well. But broadly speaking, a company must have a healthy finanical track record if they want to issue DVR shares.
A publicly traded company that wants to issue DVR shares must go through a postal ballot. There are other caveats as well. But broadly speaking, a company must have a healthy finanical track record if they want to issue DVR shares.
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