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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