Breakaway Gap

DEFINITION of 'Breakaway Gap'

A term used in technical analysis. A breakaway gap represents a gap in the movement of a stock price supported by levels of high volume.

Breakaway Gap



The image shows a gap at the beginning of a large upward movement.

BREAKING DOWN 'Breakaway Gap'

If you chart it, the gap reflects a bullish movement when the price has gapped upwards and a bearish movement when the price has gapped downwards.

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    An exhaustion gap offers a trader the opportunity to enter a sell position near the very top of a long uptrend and to quickly ... Read Full Answer >>
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    A breakaway gap is often seen after a company releases a big news announcement that earnings were much better than anticipated. ... Read Full Answer >>
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