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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RELATED FAQS
  1. How do traders interpret breakaway gaps on a security?

    Learn how stock market traders interpret breakaway gaps that appear on a security's price chart, and discover why volume ... Read Answer >>
  2. What are the main differences between Exhaustion Gaps and Breakaway Gaps?

    Read about the primary differences between two types of price chart gaps – breakaway and exhaustion – and how traders react ... Read Answer >>
  3. How do I build a trading strategy after spotting a breakaway gap pattern?

    Capitalize on the irrational exuberance investors create, forming a breakaway gap. Learn the best strategy for trading a ... Read Answer >>
  4. What are the most common securities that exhibit breakaway gap patterns?

    Learn more about the types of stocks or securities that can be more susceptible to exhibiting breakaway gap patterns in their ... Read Answer >>
  5. How are Sanku (Three Gaps) patterns interpreted by analysts and traders?

    Find out how analysts and traders interpret a Sanku, or three gaps, pattern located within a bar chart or Japanese candlestick ... Read Answer >>
  6. Why do breakaway gaps happen on securities?

    Learn what it means when a security chart has a breakaway gap, what causes a breakaway and why traders consider them to be ... Read Answer >>
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