Price gaps can occur in stock or commodity prices, and they are typically categorized into four main types: common gaps, breakaway gaps, runaway gaps, and exhaustion gaps.

1. Common gaps: These are the most frequent type of price gaps and usually occur within the trading range of a stock or commodity. Common gaps do not hold significant technical or fundamental significance and tend to get filled relatively quickly. They can be caused by overnight news, earnings reports, or other market events.

2. Breakaway gaps: Breakaway gaps occur at the beginning of a new trend, signaling a strong change in sentiment. These gaps usually happen after a period of consolidation or when a stock or commodity breaks through a significant support or resistance level. Breakaway gaps can provide traders with valuable information about the direction and strength of the new trend.

3. Runaway gaps: Runaway gaps, also known as measuring gaps or continuation gaps, occur within an established trend. They serve as confirmation of the existing trend's strength and momentum. Runaway gaps often happen when a stock or commodity is in a strong uptrend or downtrend, and they can provide traders with additional opportunities to participate in the ongoing trend.

4. Exhaustion gaps: Exhaustion gaps appear towards the end of a trend and suggest that the current price move may be nearing its conclusion. These gaps occur when there is a last surge of buying or selling before a trend reverses. Exhaustion gaps can act as warning signs for traders to consider taking profits or adjusting their positions.

Understanding the different types of price gaps is important for traders and investors as it can help them interpret market movements, identify potential trading opportunities, and manage their risk effectively.

In stock and commodity trading, price gaps occur when there is a significant difference between the closing price of one session and the opening price of the next, creating a "gap" on the price chart. The four main types of gaps are common gaps, which occur frequently due to normal market fluctuations and usually get filled quickly; breakaway gaps, which signal the start of a new trend after a consolidation phase; runaway (or continuation) gaps, which indicate strong momentum in an existing trend; and exhaustion gaps, which appear near the end of a trend, signaling a potential reversal. Gaps provide valuable insights into market sentiment, helping traders identify trend strength, breakout opportunities, and potential reversals. While some gaps fill quickly, others act as key support or resistance levels. Understanding these gaps enhances technical analysis and trading strategies.