Definition of Breakaway gap:
A breakaway gap occurs when the price gaps above a support or resistance area, like those established during a trading range. When the price breaks out of a well-established trading range via a gap, that is a breakaway gap. A breakaway gap could also occur out of another type of chart pattern, such as a triangle, wedge, cup and handle, rounded bottom or top, or head and shoulders pattern.
A blank space above or below the price bars on a price chart that is formed on a breakout from a major chart pattern and is accompanied by high volume. Technicians view a breakaway gap as signaling a major price move. See Exhaustion Gap; Gap Opening; Runaway Gap.
A sudden attack or forward movement, especially in a race or a soccer game.
A breakaway gap is a term used in technical analysis which identifies a strong price movement through support or resistance. A gap is the difference between the open price and prior close price, where no trading activity takes place. The price breaks away from the support or resistance via a gap, as opposed to an intraday breakout. Breakaway gaps are often seen early in a trend when the price moves out of a trading range or following a trend reversal.
A divergence or radical change from something established or long-standing.
Synonyms of Breakaway gap
Separatist, Heterodox, Dissident, Dissentient, Dissenting, Heretical
How to use Breakaway gap in a sentence?
- Support or resistance, in this case, is often associated with a chart pattern, such as a trading range, triangle, wedge, or other patterns.
- Other gap types include runaway, exhaustion, and common gaps.
- A winning breakaway.
- Breakaway gaps often occur early in a trend and show conviction in the new trend direction.
- A breakaway gap occurs when the price gaps above resistance or gaps below support.
- Rock was a breakaway from pop.
Meaning of Breakaway gap & Breakaway gap Definition