| Runaway emotions trigger the continuation gap. It prints about halfway through a trend when enthusiasm or fear overpowers reason. Many bars can pass before price returns to a continuation gap. Crowd intensity tends to carry the trend well past the gap before it yields to a pullback. The first test of a continuation gap often occurs after the closure of an exhaustion gap. Markets retrace according to Fibonacci proportion after they complete 5-wave trends. Pullbacks often fill the primary 5th wave completely through a First Rise/First Failure pattern. Without strong support, the countertrend thrust continues until supply-demand comes into balance and reawakens the primary trend. The continuation gap marks the natural 50% trend retracement and provides the support needed to force a reversal.
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