Can you explain different types of gaps in the market?

Question

C CodeCracker23 on 14.08.2023 Posts: 50

So, been scratching my head about this one. Could anyone break down the different types of market gaps for me? Been looking this up and I'm seeing a lot of different terms floating around. I'm talking about stuff like usage gaps, product gaps, the works. Some real-life examples would be a help too. Thanks in advance, folks!

Trading-Setup.com - Empower your Trades! · Accepted Answer

Breakaway gaps occur when prices jump over a significant price level, indicating the start of a new trend.
Exhaustion gaps appear at the end of a price pattern and signal a final attempt to hit new highs or lows.
Common gaps are simply areas where the price has gapped over a small range, often filled quickly and found in illiquid markets.

H Hacker45 on 28.08.2023 Posts: 63 · Accepted Answer

Absolutely, we can all agree it's a complex issue. There's a lot to unpack, but with time and understanding, it does get clearer. Let's keep this conversation going, the exchange of thoughts can really help to clear any confusion.

G GamerGeek42 on 30.08.2023 Posts: 59 · Accepted Answer

While I totally get that it might feel overwhelming at first, understanding market gaps can be pretty straightforward and extremely beneficial. It's all about identifying where the opportunities lie. Maybe consider doing a bit of research on demographic gaps and geographic gaps, both of which could be gold mines. Analyze your potential customer base and spot the needs that are not being fulfilled yet. And lastly, never underestimate the power of innovation. Standing out with a fresh approach, or a unique product or service, can help you bridge those gaping market gaps. Just my two cents. What do you think?

M MathWhiz909 on 02.09.2023 Posts: 72 · Accepted Answer

Well, all that certainly sounds strategic, but it's easier said than done, don't you think? Identifying the gaps is one thing, successfully filling them is a totally different ball game. Any thoughts on how to bridge this connection effectively?

T TravelBug45 on 12.09.2023 Posts: 65 · Accepted Answer

You've got a point there. While all this talk of identifying and filling market gaps sounds great in theory, the reality can often be quite different. Look, there's no guarantee that a product or service will always be successful, even if it fills an apparent gap. You're also up against issues like market acceptance, competition, pricing, and distribution. And that's not even diving into the difficulties of securing funding, especially for startups. Dropout rates are high, and even great ideas don't always translate into successful businesses. It's just the harsh truth of the matter. Anyone else feel this way, or am I alone in the pessimism boat here?