Breakaway Gap

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Production Gap

    An economic analytical term denoting the degree of relative deviation ...
  2. Exhaustion Gap

    A gap that occurs after the rapid rise in a stock's price begins ...
  3. Bear

    An investor who believes that a particular security or market ...
  4. Gap

    A break between prices on a chart that occurs when the price ...
  5. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  6. Runaway Gap

    A type of gap on a price chart that occurs during strong bull ...
Related Articles
  1. Playing The Gap
    Forex Education

    Playing The Gap

  2. Find Turning Points With Single-Day ...
    Trading Strategies

    Find Turning Points With Single-Day ...

  3. Gauging The Strength Of A Market Move
    Active Trading

    Gauging The Strength Of A Market Move

  4. Momentum Trading With Discipline
    Trading Strategies

    Momentum Trading With Discipline

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center