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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.
The image shows a gap at the beginning of a large upward movement.
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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.
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See how you can profit from these disruptions in normal price patterns.
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Take a leap of faith and follow your stocks with gap patterns.
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On their own, single-day patterns can be unreliable, but that doesn't mean they can't be used effectively.
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