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breakaway gap

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Financial Dictionary

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.

Investopedia Commentary

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 Links

Introduction To Technical Analysis
Playing The Gap

See also: Bear, Bull, Exhaustion Gap, Gap, Runaway Gap, Technical Analysis

Also spelled: break away gap

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Financial Dictionary

breakaway gap

In technical analysis, a gap in a chart pattern of price movement indicating a stock price has broken out of a trend on high volume. A breakaway gap is bullish if the price movement is upward and bearish if the price movement is downward. Compare runaway gap. See also exhaustion gap.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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