Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

Breakaway Gap

Breakaway Gap Definition

A Breakaway Gap is a technical analysis term and occurs when there is a breakout of a trading range or pattern in a stock (or security) where the price begins the trading day above or below the previous days price and range.  When an opening price is much higher or lower than the previous days closing price a gap forms.


Additional meaning of Breakaway Gap:

Depending on the direction of the gap, it will typically indicate higher enthusiasm to buy or sell the stock.  However, sometimes these sudden price gaps can be temporary, and traders need to be wary of being whipsawed out of the stock.


RELATED TERMS
Gap
Gap opening
RELATED CATEGORIES
Technical Analysis



Submit a Definition



Ask a Question

Learn the famous formula for money-making, based upon the THIRTEEN PROVEN STEPS TO RICHES! Get your FREE Copy & Instant Access to Think and Grow Rich by Napoleon Hill just by signing up.
 
   
Newsletter cover
Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z